Table 8-1
-Government-produced goods are added to GDP at
A)their market value.
B)the value they have to their users.
C)the value of the inputs used to produce them.
D)the value Congress places on them.

Question

Table 8-1 
-Government-produced goods are added to GDP at
A)their market value. 
B)the value they have to their users. 
C)the value of the inputs used to produce them. 
D)the value Congress places on them.

Quizplus · Accepted Answer

Government-produced goods are added to GDP at the value of the inputs used to produce them because there is often no market price for these goods. This method ensures that the contribution of government services is measured based on the cost of resources (like labor and materials) used in their production.

Table 8-1 -Government-Produced Goods Are Added to GDP at