Asked by eliza mooradian on May 22, 2024
Verified
The most common measure of market potential of an economy is a country's
A) GNI.
B) GDP.
C) PPP.
D) CPI.
E) APR.
Market Potential
The estimated maximum total sales revenue of all suppliers for a specific product in a market.
GDP
Gross Domestic Product, a measure of a country's economic performance, representing the total value of all goods and services produced over a specific time period.
GNI
Gross National Income, a measure of a country's income, including domestic production and foreign investments, used to estimate the economic health of a nation.
- Understand the importance of Gross Domestic Product (GDP) and additional economic indicators in evaluating the market potential of a nation.
Verified Answer
AH
Allyson HernandezMay 25, 2024
Final Answer :
B
Explanation :
GDP (Gross Domestic Product) is the most common measure of market potential of an economy. It represents the total value of goods and services produced within a country's borders over a specific period, usually a year. It indicates the size of the economy and its potential for consumption and investment. GNI (Gross National Income) and PPP (Purchasing Power Parity) are also measures of market potential, but they are less commonly used than GDP. CPI (Consumer Price Index) and APR (Annual Percentage Rate) are measures of inflation and interest rates, respectively, and are not directly related to market potential.
Learning Objectives
- Understand the importance of Gross Domestic Product (GDP) and additional economic indicators in evaluating the market potential of a nation.