Briefly discuss why an activity with no market price

Assignment Help Business Economics
Reference no: EM132505311

Briefly discuss why an activity with no market price does not count as part of GDP? Provide an example of such a situation accurately.

-In the country of Symposia, we have the following information for the year 2019:*Consumption stood at $1 billion dollars worth of goods and services, 10% of which were produced and initially sold in 2018.

*Labour wage income was $100 million.

*Businesses invested $200 million dollars in new capital (i.e. machinery) stock.

*Businesses also bought $150 million dollars worth of company stocks.

*Foreigners with working visas living in foreign-only households bought $100 million worth of locally made goods and services.

*The government of Symposia bought $200 million worth of new cars for members of parliament to use.

*Citizens of Symposia living overseas bought $100 million worth of Symposia goods.

-Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Symposia's consumption in 2019

-Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Symposia's investment in 2019

-What was Symposia's GDP in 2019? Explain your answer

Reference no: EM132505311

Questions Cloud

Explain the meaning behind platforms invert the firm : Explain the meaning behind "platforms invert the firm"
What is included in journal entry to record the declaration : The board declares a cash dividend of $.50 per share on December 1, 2019. What is included in the journal entry to record the declaration of the dividend?
Draw amy budget constraint on another graph : Draw Amy'sbudget constraint on another graph with necessary details, with"Supreme jackets" on the horizontal axis.
Element 010 Digital Audit and Snapshot Assignment : Element 010 Digital Audit & Snapshot Assignment Help and Solution - How do you create and run effective integrated digital strategies
Briefly discuss why an activity with no market price : Briefly discuss why an activity with no market price does not count as part of GDP? Provide an example of such a situation accurately.
Why average fixed cost : Why does Average Fixed Cost (AFC) fall continuously while Average Total Cost (ATC) falls then rises?
Illustrate with the use of ad-as diagram an inflationary gap : Illustrate with the use of AD/AS diagram an inflationary gap? Explain and illustrate on the diagram how the inflationary gap can be eliminated.
Changes in the estimate of annual revenues : Determine how sensitive the decision is to changes in the estimate of annual revenues? Express your answer as a percent change from the estimated value of $55,0
What range of annual miles driven is dart more economical : If fuel costs $8.00 per gallon and the MARR is 10% per year, at what average annual miles driven would you be indifferent between the vehicles?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd