From the producer's viewpoint,GDP is best thought of as an indicator of the
A)good things consumed during the period.
B)wealth of a nation.
C)costs incurred producing goods and services during the period.
D)social welfare of the nation.

Question

Quizplus · Accepted Answer

GDP measures the total value of goods and services produced within a country's borders during a specific period, usually a year. For producers, it is an indicator of the costs they incurred while producing the goods and services. Therefore, option C, costs incurred producing goods and services during the period, is the most appropriate choice. Option B, wealth of a nation, is incorrect because GDP does not account for the distribution of wealth or income in the economy. Option A, good things consumed during the period, is too narrow because GDP also includes investments and government spending. Option D, social welfare of the nation, is also incorrect because GDP does not reflect the broader aspects of social welfare such as income inequality, environmental quality, or health outcomes.

From the Producer's Viewpoint,GDP Is Best Thought of as an Indicator