Asked by Navpreet singh on May 22, 2024

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The statement "Gross domestic product (GDP) values all output equally" means that:

A) household production is treated the same as production by firms.
B) depreciation of manufactured capital is treated the same as depletion of natural resources.
C) the purchase of pollution control equipment is valued the same as pollution itself.
D) leisure time is valued the same as time spent working a job.
E) the market price of output is the measure of that output's value.

Gross Domestic Product

The entire monetary or market valuation of all last-stage goods and services produced inside the borders of a country over a given time period.

Manufactured Capital

Physical assets created by humans to assist production, such as machinery, buildings, and infrastructure.

Pollution Control

The practices and policies directed towards regulating, reducing or eliminating the release of pollutants into the environment.

  • Understand the principle and analysis of Gross Domestic Product (GDP) and its significance in appraising economic operations.
  • Comprehend the deficiencies and critiques associated with utilizing GDP as a metric for economic welfare and the well-being of society.
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Nadia AdrianaMay 28, 2024
Final Answer :
E
Explanation :
GDP values all output equally in terms of their market prices, meaning that the value of output is measured based on the price that it is sold for in the market. Therefore, the purchase of pollution control equipment or depreciation of manufactured capital would be accounted for in the market price of the final product, and leisure time or household production would not be included in GDP as they do not have a market value.