All categories

4 years ago

What are the limitations of gdp and gnp

Business

2 answers:

Ipatiy [6.2K]4 years ago

8 0

Limitation of Gross Domestic Products (GDP) Includes

GDP does not make any measures of welfare and only includes market transactions.GDP does not describe income distribution and what is being produced.

Failure to indicate whether the nation's rate of growth is sustainable or not and no degree of income inequality in society

Limitation of Gross National Products :

The same difficulty regarding economic and social costs arises because there is no identity between the economic costs of producing the current national output and the social costs of the output.

shutvik [7]4 years ago

7 0

The limitations of GDP. GDP is a useful indicator of a nation's economic performance, and it is the most commonly used measure of well-being. However, it has some important limitations, including: The exclusion of non-market transactions.

You might be interested in

__________ values and norms are exhibited by employees based on their observations of what actually goes on in the organization.

abruzzese [7]

Based on their observations of what actually occurs in the organization, employees demonstrate the enacted values and norms.

Your values are the things you hold dear in terms of how you conduct your life and career. Value indicates the significance of an action or thing in ethics and social sciences. Values include things like money, allegiance, independence, fairness, equality, justice, brotherhood, and friendship. Values include things like money, allegiance, independence, fairness, equality, justice, brotherhood, and friendship. In the social sciences, norms are a key notion. Norms are most frequently described as socially imposed laws or expectations. Norms can be prescriptive (encouraging good behavior, such as "be honest") or proscriptive (forbidding bad behavior, such as "do not cheat").

Learn more about Norms here

brainly.com/question/15706409

#SPJ4

8 0

1 year ago

Read 2 more answers

The following transactions occur for Badger Biking Company during the month of June: a. Provide services to customers on account

pentagon [3]

Answer:

The Accounting Equation is: Assets = Liabilities + Stockholders' Equity. Thus, we will see how each transaction affects liabilities, assets, or, stockholders' equity.

a. Provide services to customers on account for $32,000.

Service revenue: $32,000 to stockholders equity.

Accounts receivable: $32,000 to assets.

b. Receive cash of $24,000 from customers in (a) above.

Cash: $24,000 to assets.

Accounts Receivable: ($24,000) to assets.

c. Purchase bike equipment by signing a note with the bank for $17,000.

Equipment: $17,000 to assets.

Accounts payable: $17,000 to liabilities.

d. Pay utilities of $3,200 for the current month.

Uitlities expense: ($3,200) to stockholders equity.

Cash: ($3,200) to assets.

5 0

4 years ago

Jose wanted to make a graph to show his budget for the month. what type of graph would be the most appropriate to graph for jose

Andru [333]

D. Circle (Pie) graph

3 0

3 years ago

Read 2 more answers

Please fill in the blanks with appropriate option.

Fiesta28 [93]

Answer: Please refer to Explanation

Explanation:

1. Inflationary Gap.

Due to the availability of more disposal income due to tax cuts, more amount is being spent on consumption leading to a rise in actual GDP which is more than the potential GDP as the economy has not adjusted.

2. Output Gap.

This is the difference between the Actual GDP and the Potential GDP.

3. Demand Shock

This increases or reduces Aggregate Demand due but only temporarily.

4. Recessionary Gap.

This is where actual GDP falls below Potential GDP.

5. Supply Shock.

Like a demand shock, it suddenly increases or reduces the supply of goods and services. It is temporary as well.

6. Self Correction

Economists believe that in the long run, the Economy is capable of adjusting to shocks and returning to it's potential and natural levels.

8 0

3 years ago

investment is made at r percent compounded annually, at the end of n years it will have grown to A = P(1 + r)n . An investment m

bixtya [17]

Answer:

$1,500

Explanation:

Given the compounding formula $A = P(1+r)^{n}$

And given an investment (P), made at 16% compounded annually (r), and an ending amount of $1,740 (A) at the end of the year (n = 1 year), the original amount invested (P) can be computed as follows.

$1,740 = P(1+0.16)^{1}$

$1,740 = P * 1.16$

= P = 1,740/1.16 = 1,500.

Therefore, the original investment was $1,500.

3 0

3 years ago