By summing all market transaction, we will get a sum greater than the total GDP as market transactions will include trade of second hand goods too which will cause the problem of double counting in national income and make GDP larger than actual.
Thus option D is correct.
Question 19 By summing all market transactions in the economy we would: be determining value added...
10. Comparing the expenditure and value-added approaches for calculatingGDP The expenditure and value-added approaches to calculating GDP arrive at the same final number, but they reach that number in different ways. To illustrate, consider the possible effects of the following set of transactions on GDP: 1. Raphael pays Better Buy $800 for a new high-definition television (HDTV) and its installation. He's attracted by Better Buy's guarantee that he'll be happy with the new HDTV or get his money back. 2....
19. Which of the following values would be included in U.S. GDP for 2006? a. the rent that John, an American citizen, would have paid on his home in New York in 2006 had he not owned that home b. the rent that Sarah, an American citizen, paid on her apartment in San Francisco in 2006 c. the value of the legal services provided by Carlos, an attorney and a Mexican citizen, who lived in Houston and practiced law there...
Aa Aa 2. Comparing the expenditure and value-added approaches for calculating GDP The expenditure and value-added approaches for calculating GDP arrive at the same final number, but they calculate that number in different ways. To illustrate this, think about the effects of the transactions in the following story about GDP: Akshay pays Better Buy $1,000 to install a new high-definition television (HDTV) on his living room wall. He's attracted by Better Buy's guarantee that he'll be happy with the new...
The expenditure and value-added approaches for calculating GDP arrive at the same final number, but they calculate that number in different ways. To illustrate this, think about the effects of the transactions in the following story about GDP: • Zach pays Better Buy $1,100 to install a new high-definition television (HDTV) on his living room wall. He's attracted by Better Buy's guarantee that he'll be happy with the new HDTV, or he'll get his money back. • Better Buy pays...
I 1) Gross Domestic Product (GDP) is A) the total wholesale value of all final goods and services produced by factors of production owned by citizens of a nation B) the total market value of all services produced by factors of production located within a nation's borders. C) the total market value of all goods produced within a nation's borders D) the total market value of all final goods and services produced by factors of production located within a nation's...
1.In a capitalist economy, the market value of something is determined by......and....... Prices are the quantification of those values in terms of the money that is used. When the supply of something is high, relative to demand, the price will be........ When the demand for something is .........relative to the supply, the price will be high. When the....... for something is low relative to the......., the price will be high. Prices play an important role in the market economy because...
eau ovCI tc uubti Question 18 GDP may be defined as: the monetary value of all goods and services, final and intermediate, produced in a given year o the national income minus all nonincome charges against output the final monetary value of all goods and services produced in a country in a given year the monetary value of all economic resources used in the production of a year's output Previous
In a mixed economy, how is output allocated? Question 1 options: Via the market mechanism By the political process Partly by the market mechanism and partly by the political process. By the central planner Fruit canning plants in Malaysia are relatively labor intensive and those in the US are relatively capital intensive. An economist would say: Question 2 options: firms select methods of production to reflect relative factor prices in their locations. economists would be stumped to explain such a...
11) Gross Domestic Product (GDP) is An thetotal wholisagoods and services producedby fciors oduion owned by citizens of a nation. B) the total market value of all services produced by factors of production located within a nation's borders. C) the total market value of all goods produced within a nation's borders. D) the total market value of all final goods and services produced by factors of production located within a nation's borders. 12) Intermediate goods are A) goods that are...
27. A firm's value added equals a) its revenue minus all of its costs. b) its revenue minus its wages. c) its revenue minus its wages and profit. d) its revenue minus its cost of intermediate goods. e) none of the above 28. Deflation generally occurs when which of the following occurs? a) the consumer price index is greater than the GDP deflator b) the consumer price index decreases c) the rate of inflation falls, for example, from 4% to...