How are final goods and services valued when measuring nominal GDP?
A. at base year prices
B. at current market prices
C. at producer cost
D. at foreign exchange parity
Answer (2)
Final goods and services are valued at current market prices when measuring nominal GDP. This reflects the value of goods and services at the actual prices consumers pay at the time of measurement. Therefore, the correct answer is option B.
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In economics, nominal Gross Domestic Product (GDP) is a measure that reflects the total value of all final goods and services produced within a country in a given time period, typically a year or a quarter, without adjusting for inflation.
Here is how final goods and services are valued when calculating nominal GDP:
(B) At current market prices ;
