Gross domestic product is inferior measure of product

Assignment Help Business Economics
Reference no: EM13982652

Gross domestic product (GDP) is an inferior measure of a nation's product because: A) no allowance is made for the fact that people have to pay taxes on their income. B) no allowance is made for the fact that people save some of their income. C) no allowance is made for the fact that some of the product is added to the capital stock. D) no allowance is made for international trade. E) no allowance is made for the fact that some of the product must be used to replace investments that become obsolete.

Reference no: EM13982652

Questions Cloud

At the nonaccelerating inflationary rate of unemployment : At the nonaccelerating inflationary rate of unemployment (NAIRU):
Has it increased or decreased over the past few years : Has the percentage increased, decreased, or remained the same? If the ratio percentage has changed what accounts for the change?
Experience goods are products or services : Experience goods are products or services
Explain the four tenets of the classical position : Explain the four tenets of the classical position. Consequences of Peace: explain Keynes concerns regarding the Armistice. What did Keynes really mean by "In the long run we are all dead." Explain how the multiplier can achieve full employment. What ..
Gross domestic product is inferior measure of product : Gross domestic product (GDP) is an inferior measure of a nation's product because: no allowance is made for the fact that people have to pay taxes on their income. no allowance is made for the fact that people save some of their income.
Short- and long-run effects of these fiscal adjustments : In 2015, the U.S. federal government increased government spending (G) by $56 billion. This question has you both illustrate and explain the short- and long-run effects of these fiscal adjustments. Using the short-run model, show the impact of increa..
Compute cost depletion for the first two years : Estimates of the amount of ore held by the mine at the end of the first year were revised to 670,000 tons. Compute cost depletion for the first two years.
Monetary policy is easier to make than fiscal policy : Do you think that Monetary policy is easier to make than fiscal policy? Why is one easier or harder than the other? What is the Goal of each of the policies? Are the goals in conflict or complements of each other?
If mosquito control were left to the private market : Suppose there are only two people in society. The demand curve for person A for mosquito control is given by qA=$100−P. Suppose mosquito control is a nonexclusive good – that is, once it is produced, everyone benefits from it. What would be the optim..

Reviews

Write a Review

Business Economics Questions & Answers

  Affect the general unemployment level in the economy

Why might we not expect free trade to affect the general unemployment level in the economy, but it will affect some more than others?

  Initially consumes the quantity of pens and pencils

Henry initially consumes the quantity of pens and pencils shown as B in figure 2. After the prices of both goods change, he buys combination A. From figure 2 and these facts, it must be true that . . .

  Concerning the variables in regression analysis

Which of the following statements concerning the variables in a regression analysis is true?

  Payoff table for game when mixer type uses mixed strategy

Recall from Exercise Ul the population of animals fighting over a food source worth 200 calories. Assume that, as in part (b) of that exercise, the cost of a fight is 150 calories per fighter. Assume also that a third phenotype exists in the populati..

  Show indifference curve that goes through that bundle

for each bundle that the consumer chooses, show the indifference curve that goes through that bundle. Make sure to label your graph carefully and accurately.

  Analyze the given graph of a linear programming model

Analyze the given graph of a linear programming model with a single constraint and the objective function: Determine the values by which the constraints c1 and c2 must decrease or increase in order to change the current solution point shown in the gr..

  Explain why we obseve flat upward sloping and inverted yield

State whether the following statements are True, False or Uncertain. Provide a short justification for your answer. (i) Bond A is a 5­year bond with a 9% coupon rate and a YTM of 9%. Bond B is a 15­year bond with a 8% coupon rate and a YTM of 10%. Bo..

  Illustrate what effect will this have on its optimal price

The company's settlement obligations are expected to raise its average total cost per pack by about $60. Illustrate what effect will this have on its optimal price.

  Production function exhibits

By using calculus show that the production function exhibits diminishing returns to labor.

  What are the respective elasticity coefficient

According to U.S. Department of Agriculture econominist Karl Fox, "An increase of 10 percent in the farm price of the "average" food product would be associated something like a 4 percent increase in the retail price and perhaps a 2 percent decreases..

  Advertising fosters brand loyalty and decrease labor demand

When advertising fosters brand loyalty, critics claim that it. A key determinant of recent labor productivity has been. When a profit-maximizing firm makes a decision to employ a worker, that decision is based on. For a perfectly competitive firm to ..

  Terminate the program or move to the development phase

A pharmaceutical company has already spent 1 million dollars in research for a new drug and now has to make a decision. The company can either terminate the research program or it can move to the development phase. If the company moves to the develop..

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