Their are some drawbacks of using GDP:
1. It takes into account only market transactions and ignores all non-market transactions like services of a housewife etc. which also plays an important role in the growth of a country.
2. It ignores all the externalities. It does not take into account the negative and positive effects of producing goods and services.
3. It does not show the distribution of income. This means that there may be unequal distribution of income which may increase the income gap between rich and poor.
So, these are the drawbacks of using GDP.
QUESTION 16 What are the drawbacks (that is, the categories not accounted for) in the calculation...
In 2018, this country accounted for the biggest share of world output (measured by GDP) A. Japan B. Germany C. India D. US E. China
What are the drawbacks and benefits associated with moving business unit HQ and corporate HQ to another country? ON ETHICS: If you were a CEO or a business unit head, under what conditions would you consider moving HQ? If you were a government official in the MNE’s home country, what can you do to discourage such moves of multinational HQ out of the country?
What are the four main categories of GDP ?
Explain how the value of intermediate goods are accounted for in the GDP data, in the following three circumstances: 1) they are used to produce final goods in the current year; 2) they are left over to be turned into final goods in the following year; and, 3) they are imported from a foreign country and used to produce final goods in the current year.
what are drawbacks of using CAPM
Please solve and show the calculation
Question 16 8 pts Given the following information, what is the standard deviation for this stock? (Hint: you'll need to find the expected return first) Probabilities: Recession: 0.3 Normal: 0.4 Boom: 0.3 Returns: Recession: -9% Normal: 7.5% Boom: 16% 09.88% 09.18% O 8.42% 11.35% 7.38%
Question 16 In order to make useful predictions, which factors must be accounted for by climatic models? 1. Cooling effect of atmospheric aerosols II. Smoke, haze, and cloud cover III. Change in land use IV. Combustion of fossil fuels OIV only Il and Ill only O III and IV only 1. 11. III, and IV
What are the eligibility requirements and coverage of Medicaid for the categories of low-income adults, pregnant women, and the aging/blind/disabled in the state where you live? Do you consider the eligibility requirements reasonable or restrictive? Do you consider the coverage reasonable or liberal? What are the benefits and drawbacks to keeping these populations insured through Medicaid? Consider both direct and indirect factors.
Question 16 Exhibit 3 Below you are given a partial computer output based on a sample of 19 countries relating their debt (Y in billion dollars), GDP (X1 in billion dollars) and the score on a corruption index (X2). The higher the corruption index, the more corrupt a country is. Source of Variation Sum of Squares Degrees of Freedom Mean Square F Regression 150 Error TOTAL 200 18 Coefficient Standard Error Intercept 6.25 7.865 GDP (X1) 0.5 0.5 Corruption Index...
Question 16 1 pts In the aggregate expenditures model of the economy, a downward shift in aggregate expenditures can be caused by a decrease in government spending or an increase in taxes. taxes or an increase in government spending. interest rates or a decrease in taxes. saving or an increase in government spending Question 18 As disposable income decreases, consumption and saving both increase. and saving both decrease. increases and saving decreases. decreases and saving increases. Question 19 1 pts...