The dollar value of total output
A) equals the value of all physical goods sold in the United States.
B) equals the market value of all final goods and services produced in the United States.
C) equals only the value of stocks on the New York Stock Exchange.
D) equals only the value of new services in the economy.

Question

Quizplus · Accepted Answer

The best choice is B because the dollar value of total output is calculated by measuring the market value of all final goods and services produced in the United States during a certain period of time, usually a year. This includes all goods and services, not just physical goods, and reflects the value added at each stage of production. It does not include the value of stocks on the New York Stock Exchange or only the value of new services in the economy.

The Dollar Value of Total Output