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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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During 2018, its first year of operations, Pave Construction provides services on account of $152,000. By the end of 2018, cash

ASHA 777 [7]

The adjustment for noncollectable accounts on December 31, 2018:

Debit Bad Debts Expense $13,800

Credit Allowance for Doubtful Account $13,800

Explanation:

In Pave Construction, 2018 is the first year of operations. The company provides services on account of $152,000.

By the end of 2018, cash collections on these accounts total $106,000.

At the end of 2018, Accounts Receivable (the uncollected accounts) has debit balance of $46,000 ($152,000 - $106,000 = $46,000)

Pave estimates that 30% of the uncollected accounts will be bad debts

Bad Debts Expense = 30% x $46,000 = $13,800

The adjusting entry to record the bad debts expense will be:

Debit Bad Debts Expense $13,800

Credit Allowance for Doubtful Account $13,800

3 0

3 years ago

Which of the following statements is true of service facilities? Select one: a. They store their services as physical inventory.

matrenka [14]

Answer: Option B

Explanation: Service facilities refers to those companies that have business of providing services such as emergency medical care, automobile repair etc.

These firms belongs to service industry in which every customer might need a little bit different work from the others. Thus, in order to know their customers specific wants and preference they must have a close relationship with them.

Hence from the above we can conclude that the right option is B.

6 0

3 years ago

matthew's fish fry has a monthly target operating income of $7,200. variable expenses are 60% of sales and monthly fixed expe

slamgirl [31]

Given, Operating income = 7,200

Fixed expenses = 1800

Let the target sales be assumed to be X

Sales = 7200 + 1800 + 0.6*Sales

X = 7200 +1800 +0.6X

X-0.6X = 9000

0.4X =9000

X = 22,500

Target Sales = 22,500

Break even point = Fixed Costs/(Price -Variable cost)

Break even point = 1,800/(1-0.6) = 1,800/0.4 = 4,500

Break even point =4,500

Margin of Safety = (Target sales - break even point)/ Target Sales

Margin of Safety = (22,500-4,500)/22,500 = 18,000/22,500 = 0.8 = 80%

Margin of Safety =80%

7 0

3 years ago

Read 2 more answers

Back Bay Company is a price−taker and uses target pricing. Refer to the following information:Production volume602,000units per

kirill115 [55]

Answer: $30.10 per unit

Explanation:

Given that,

Production volume = 602,000 units per year

Market price = $34 per unit

Desired operating income = 17% of total assets

Total assets = $13,800,000

Total income = 17% of Total assets

= 0.17 × $13,800,000

= $2,346,000

Total sales = Market price × Production volume

= $34 per unit × 602,000 units

= $20,468,000

Target full product cost in total for the year:

= Total sales - Total income

= $20,468,000 - $2,346,000

= $18,122,000

Target full product cost per unit = $\frac{Target\ full\ product\ cost}{Production\ volume}$

= $\frac{18,122,000}{602,000}$

= $30.10 per unit

4 0

3 years ago

WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for t

mixer [17]

Answer:

yes yes NO ( A )

Explanation:

products X,Y,Z

units produced : X = 1500 , Y = 2000, Z = 3000

per unit sales value at split-off : X = $19, Y = $21, Z = $24

Added processing costs per unit : X = $7, Y = $7.50 , Z = $7

per unit sales value if processed further : X = $29, Y = $29, Z = $30

COST OF JOINT MATERIAL INPUT = $149000

To check for products to be processed further we apply

(unit sales value if processed further - per unit sales value at split-off ) - ( added processing cost )

for product X = $29 - $19 - $7 = $3

for product Y = $29 - $21 - $7.5 = $0.50

for product Z = $30 - $24 - $7 = - $1 ( negative value )

products to be processed beyond the split of point would be : X Y

because Z has a negative contribution margin

4 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?"