Total spending on final goods and services in an economy must equal the total value of
A) profits.
B) production.
C) revenues from all transactions.
D) consumption.
E) investment.

Question

Quizplus · Accepted Answer

Total spending on final goods and services in an economy is measured by Gross Domestic Product (GDP), which is the total value of production in an economy. Therefore, the correct answer is B) production. The other options are not accurate because profits, revenues, consumption, and investment are all components of GDP, but they do not represent its total value.

Total Spending on Final Goods and Services in an Economy