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Kitty [74]
3 years ago
10

Critics of the National Income and Product Accounts (NIPA) argue that the accounts are outdated and fail to account for "intangi

bles" in our new knowledge-based economy. For example, many firms create copyrighted materials (movies, books, etc.) that, when completed, are much more valuable than just the value of the market place inputs that went into their production. What might be some of the problems associated with trying to include these intangibles in the NIPA?
A) The problem is actually minimal; the NIPA does not take the necessary steps to do the right thing.
B) The NIPA finds it difficult to place a value on something that is intangible.
C) The NIPA believes it is too easy for thieves to retrieve the information due to hackers.
D) The real problem is the timing of when to include such projects in the NIPA.
Business
1 answer:
Shalnov [3]3 years ago
6 0

Answer: The correct answer is "B) The NIPA finds it difficult to place a value on something that is intangible.".

Explanation: The problem is to assign value to assets that are not material, that is, they are intangible, for some reasonable estimates can be made in order to include them in the gross domestic product to provide this statistic with greater precision.

For example: It is difficult to know what value can be assigned to a project that is not known if it will be completed or not and if it will be susceptible to market valuation?

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Since world war ii, the federal government's share of total government expenditures has been between?
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The federal government has accounted for between two-thirds and three-quarters of all government spending since World War II. Since the end of the Korean War in the early 1950s, the federal government's purchases of goods and services as a percentage of GDP have been falling.

Automatic increases and decreases in government expenditure and taxation that follow the economic cycle. The majority of government spending in the United States took place at the state and municipal levels up to the Great Depression of the 1930s.

The federal government has accounted for between two-thirds and three-quarters of all government spending since World War II. Federal Expenditures and Purchases as a Percentage of GDP, 1950–2008.

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5 0
1 year ago
In preparing a statement of cash flows under the indirect method, a decrease in accounts receivable would be reported as a(n): M
denpristay [2]

Answer:Addition to net income in the operating activities section

Explanation:

8 0
2 years ago
Which graph shows the relationship between the aggregate price level and the aggregate quantity supplied over time?
PilotLPTM [1.2K]
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3 years ago
Assume that the required reserve ratio is 20 percent. If the Federal Reserve buys $80 million in government securities from comm
Anni [7]

Answer: increase by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million

Explanation:

Based on the information given in the question, the money multiplier will be calculated thus:

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where,

Required reserve ratio = 20%

Money Multiplier will now be:

= 1/0.20

= 5

Therefore, the maximum money-lending potential will be:

= $80 million × 5

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Therefore, the money supply will by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million

5 0
2 years ago
"tractor is a modern tool of agriculture".justify this statement with suitable example​
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