To compute the value of nominal GDP:
A) goods and services are valued at market prices.
B) the sale of used goods is included.
C) production for inventory is not included.
D) goods and services are valued by weight.

Question

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of goods and services produced by their current market prices. Option A correctly states that goods and services are valued at market prices, therefore, it is the correct choice. Options B and C are incorrect because the sale of used goods is not included in GDP, and production for inventory is included in GDP when the goods are sold, not when they are produced. Option D is incorrect because goods and services are not valued by weight, but by their market prices.

To Compute the Value of Nominal GDP