Measuring total production by valuing items at their market value allows us to
A)separate the value of different goods with identical prices.
B)separate the value of different goods with different prices.
C)add together the value of different goods that have different prices.
D)add together the value of identical goods that have identical prices.
E)ignore the problem that goods and services differ in how long they last.

Question

Quizplus · Accepted Answer

Measuring total production by valuing items at their market value allows us to add together the value of different goods that have different prices. This is the rationale behind the use of Gross Domestic Product (GDP) as a measure of a country's total economic output. By valuing all goods and services produced in a country at their market prices, we can add together the value of different goods and services that have different prices, allowing us to get a measure of the total output of the economy.

Measuring Total Production by Valuing Items at Their Market Value