Pick one answer for each

National income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production because

• it is impossible to add oranges and computers.
• the percentages could never be the same.
• there is more information available on the market value than on the output level.
• only information on market values is available.

Comparing market values over time has the

• benefit of tracking economic performance perfectly.
• drawback of providing information for the analysis of economic performance.
• disadvantage that prices change over time.
• advantage that prices change over time.

How is the problem of changing prices resolved?

• Real values are inflated or deflated so that nominal changes in output are recorded.
• Nominal values are deflated so that personal consumption changes are recorded.
• Real values are deflated so that personal consumption changes are recorded.
• Nominal values are inflated or deflated so that real changes in output are recorded.

Economists include only final goods in measuring GDP for a particular year because if intermediate goods were

• counted, then multiple counting would occur.
• not counted, then multiple counting would occur.
• counted, then prices would be overstated.
• not counted, then prices would be overstated.

Gross domestic product does not include the value of stocks and bonds sold because these sales and purchases are not economic

• investment but should be counted as production of final goods and services.
• consumption but should be counted as production of final goods and services.
• consumption and should not be counted as production of final goods and services.
• investment and should not be counted as production of final goods and services.

When measuring GDP for a particular year, economists exclude the value of used furniture bought and sold because

• it is not reported anywhere.
• it is a durable good.
• it was included in the GDP of the year in which it was produced.
• the value needs to be averaged over a specified number of years.