The annual cost of producing the entire output of goods and services in the economy
A) includes financial transactions.
B) can be calculated entirely on the basis of financial transactions.
C) includes durable goods but excludes nondurable goods.
D) is total income.

Question

Quizplus · Accepted Answer

The annual cost of producing the entire output of goods and services in the economy is equivalent to the total income or the total value of all goods and services produced in the economy. It includes both durable and nondurable goods and cannot be calculated only on the basis of financial transactions.

The Annual Cost of Producing the Entire Output of Goods