Answer:
A. The total market value of steel used to produce car and total market value of car itself are summed
Explanation:
Double Counting refers to multiple inclusion of Intermediate goods' value in value of Final Goods . Final Goods are goods used for self consumption , investment & Intermediate Goods are goods used for further processing , further resale .
Eg : Farmer sold wheat to miller for 100 . Miller sells flour to baker for 150 (miller value added = 150 - 100 = 50) .Baker sells bread to consumers for 200 (baker value added = 200 - 150 = 50) . But ,Value of Bread (200) already includes value of flour (150) , which further includes value of wheat (100) and value added at each stage 50 each.
If including value of both final good (Bread) and intermediate good (Wheat , flour) : Bread value would be 100+150+200 = 450 which is much overvalued above real value 200, including all intermediate goods value , because of Double Counting of IC goods value in Final Good
Similarly : Steel used as Intermediate good to produce Final Good Car , if included in Car Value - will lead to Double Counting
Answer:
Arithmetic = 7.62% and geometric returns =6.80%
Explanation:
Please see attachment .
The average of anything means you add all the values and divide by the number of values. In this case you would add all the month's utility bills and divide by the number of bills included. However, in this instance, I would exclude April since this in an anomaly and she will not get a free month's cable every month. SO add the other other months together and divide by 5.
Answer:
that this antipoverty program costs the government more money.
Explanation:
The criticism would be that the that this antipoverty program costs the government more money. If the government should phase its support to anti poverty payments more slowly, the criticism would be that the programs costs more money.
Therefore this option is the right answer