. Which of the following represents an argument in support of comparing the mark
ID: 1225064 • Letter: #
Question
. Which of the following represents an argument in support of comparing the market value of the total output in various years, rather than comparing the actual physical volume of production? A. The composition of output remains fairly constant over time. B. With progress some products disappear and new products emerge. C. Market value provides a common denominator for comparing different combinations of different products. D. Both B & C above provide such an argument. E. None of the above provides such an argument.
Explanation / Answer
The answer of the question is option
C. Market value provides a common denominator for comparing different combinations of different products. This is because market value shows us how much dollar we spent which is not there in case of actual physical volume of production. In that case we see how many products sold, which is not ideal way because of fluctuation in price. In case of market value we can see the effect of inflation.
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