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3 years ago

"GDP is an imperfect measure of economic well-being because it fails to measure what types of production?"

Business

1 answer:

almond37 [142]3 years ago

8 0

Answer:

GDP is an imperfect measure of Economic well being because of : Production of - Non Monetary Exchange goods , Positive & Negative Externalities goods, Negative Impact goods.

Explanation:

GDP is the total value of goods & services produced by an economy during a period of time.

Although reflecting flow of goods & services in an economy, GDP is still not a perfect measure of well being because :

Non Monetary Exchange Goods : Services of family members (housewives), leisure production (eg painting) are non monetary.
Positive & Negative Externalities Goods: Benefit or harm to un-involved party, without any monetary exchange. Eg - Education, Pollution.
Negative Impact Goods : Goods consumption leading to well being loss rather than well being gain. Eg- Addiction (Alcohol / Smoking).

All these goods change well being : Non Monetary Exchange Goods increase well being , Positive Externalities increase welfare , Negative Externalities decrease welfare , Negative Impact goods decrease welfare.

But, these are still not included in GDP evaluation. So, all these make GDP an imperfect measure of well being.

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If bonds with a face value of $208,000 are issued at 97, the amount of cash proceeds is ____

madam [21]

Answer:

C) $201,760

Explanation:

To compute the amount of cash proceeds, we have to multiply the bonds face value with the issued price percentage.

Since only issue price is given, so we assume it is in percentage form because the number of shares is not given in the question. So, we assume this.

In mathematically,

Cash proceeds = Face value × 0.97

= $208,000 × 0.97

= $201,760

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3 years ago

Wage and price stickiness Select one: a. gives rise to a vertical long-run aggregate supply curve. b. gives rise to a vertical s

Tresset [83]

Answer:

d. prevents the economy from producing its potential level of real GDP.

Explanation:

Price-stickiness or Wage-stickiness, is a term that describes a condition in which a nominal price or wage is resistant to change. Often referred to as Nominal Rigidity, this occurs when a price or wage is fixed in nominal terms for a given period of time.

In other words, Price stickiness or Wage Stickiness occurs when workers' earnings or price don't adjust quickly to changes in labor market conditions, thereby creating sustained periods of shortage or surplus.

Hence, Price and Wage stickiness prevent the economy from achieving its natural level of employment and its potential output, which in turn prevents the economy from producing its potential level of real GDP.

5 0

3 years ago

If you receive a loan the money the lender gives you is called

garik1379 [7]

When you receive a loan, the money the lender gives you is called the LINE OF CREDIT. Answer B.

3 0

3 years ago

Which of the following are examples of interest rate futures contracts?

yanalaym [24]

Answer:

Option D, T Bonds and Eurodollars , is the right answer.

Explanation:

Option D is correct because the future contract or interest rate future is the instruments that pay or offer the interest. However, the contract is an agreement on which buyer and seller are agreed for the future delivery of any interest that the asset bears. However, this contract gives the offer to the buyer and seller to lock the price of the asset that bears the interest in a future date. Moreover, this instrument is not a market traded instrument, these are the instrument used for a cash settlement. Thus, the same can be seen with option D. thus it is correct.

4 0

3 years ago

Suppose that a young couple has just had their first baby and they wish to insure that enough money will be available to pay for

tankabanditka [31]

Answer:

$97,331.30

Explanation:

To calculate the amount available on the daughter's 18th birthday the following should be taken into cognisance

First, the yearly deposit increases by 5% every year, therefore year one is $2,000 but year 2 is $2,000 x1.05= $2,100 and continuing like that.

Secondly, the total deposit pre year is calculated as annual deposit for the year (1+interest rate)∧year on a descending basis.

It is therefore as follows;

Years Annual deposit Total value of deposit including interest

1 $2,000.00 $2,000(1+0.07)∧17= $6,317.63

2 $2,100.00 $2,100(1+0.07)∧16= $6,199.54

3 $2,205.00 $2,205(1+0.07)∧15=$6,083.66

4 $2,315.25 $2,315.25(1+0.07)∧14=$5,969.95

5 $2,431.01 $2,431.01(1+0.07)∧13=$5,858.36

6 $2,552.56 $2,552.56(1+0.07)∧12=$5,748.86

7 $2,680.19 $2,680.19(1+0.07)∧11=$5,641.41

8 $2,814.20 $2,814.20(1+0.07)∧10=$5,535.96

9 $2,954.91 $2,954.91(1+0.07)∧9=$5,432.48

10 $3,102.66 $3,102.66(1+0.07)∧8=$5,330.94

11 $3,257.79 $3,257.79(1+0.07)∧7=$5,231.30

12 $3,420.68 $3,420.68(1+0.07)∧6=$5,133.52

13 $3,591.71 $3,591.71(1+0.07)∧5=$5,037.56

14 $3,771.30 $3,771.30(1+0.07)∧4=$4,943.40

15 $3,959.86 $3,959.86(1+0.07)∧3=$4,851.00

16 $4,157.86 $4,157.86(1+0.07)∧2=$4,760.33

17 $4,365.75 $4,365.75(1+0.07)∧1=$4,671.35

18 $4,584.04 $4,584.04(1+0.07)∧0=$4,584.04

Total $56,264.77 $97,331.30

5 0

3 years ago

"GDP is an imperfect measure of economic​ well-being because it fails to measure what types of​ production?"

"GDP is an imperfect measure of economic well-being because it fails to measure what types of production?"