The market values of goods and services are used when calculating GDP because they:
A) allow us to compare one economy to another.
B) accurately capture the value of economic activity occurring in black and gray markets.
C) focus on the quantities produced rather than the overall value of production.
D) track production but not spending on services.

Question

Quizplus · Accepted Answer

Market values of goods and services are used when calculating GDP because they allow us to compare one economy to another. It provides a standard measure to compare the economic performance of countries.

The Market Values of Goods and Services Are Used When