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Lubov Fominskaja [6]
3 years ago
14

Why is gdp an imperfect measurement of total production in the​ economy?

Business
1 answer:
ra1l [238]3 years ago
8 0
First of all, GDP does not include household production, production from the underground economy, intermadiate goods or intermediate servces. That is because we define GDP to be the total of all market values of all final goods and services in the country. Hence, the correct answer by the above definition cannot be d. The point of that definition is that household products cannot have a market value and that if we counted towards the GDP both the value of a Graphics Card and that of the PC, we would double count the value of the Graphics Card, thus overestimating the GDP. We see that the value of new houses are included in GDP since they need materials and services and they have a market value, so b is also excluded. Finally, we have shown that b is true but that this is a good thing and leads to a better estimate of total production; the correct answer is a. Here is an example. If there is an economy where in every house there is plenty of wood and people make wood dolls out of tradition, these dolls will not have a market value if they are kept by the people who made them. Nonetheless they are products too and everyone could just try to sell them the next day at a reasonable price; then, the GDP would get a bump out of nowhere, because it cannot account for household items or the underground economy.

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3 years ago
As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 20% of Nursery Supplies Inc
Natalija [7]

Answer:

Nursery Supplies at year-end 76,000,000

Gain on investment 12,000,000

Explanation:

Considering is considered a long-term investment for Florists International and the percentage of owership is significant we use equity method.

value of the investment at year end:

begining 67,000,000

income 60,000,000 x 20% = 12,000,000

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8 0
3 years ago
Risk acceptance defines the quantity and nature of risk that organizations are willing to accept as they evaluate the trade-offs
NNADVOKAT [17]

Answer:

Tolerance

Explanation:

Risk tolerance: It is defined as level of risk that an organization is willing to take for completing any specific task. Evaluating the risk in the trade off between perfect security and unlimited accessibility as risk of security breach is still there instead of perfect security as there is unlimited accessibility, however, how much risk can be tolerated or accepted need to be evaluated and can be mitigated.

There are different technique been used to minimize the risk factors are:

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3 years ago
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Fittoniya [83]

Explanation:

Trade offs are something in which there are two things and we choose one of them according to our own preference or need. This is and should be our personal decision, but when Corporations and Governments decide on what to choose between two things, there would might be a negative impact on someone's life. He might feel controlled by the corporations and governments. For example, if corporations of CNG decides with the government that it is better for consumers to use CNG than Petrol in their cars, and lowers taxes on CNG and encourage consumers to shift towards CNG, then this trade off will have an impact of being controlled by the big giants. The choice should be of consumer's. The consumer should be the one who will trade off between things who are preferable for him.

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3 years ago
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The benefits value of employees pay is 10- 20
8 0
3 years ago
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