Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 8: Q.b - For Critical Thinking (page 171)

Why might a range of dashboard economic indicators be difficult to include in one single measure such as GDP?

Short Answer

Expert verified

It will prompt more assessment issues as these pointers are dissimilar to labour and products don't have a market cost which makes their valuation simple.

Step by step solution

01

Introduction

Gross domestic product or Gross Domestic Product alludes to the market worth of every last great and administration delivered inside the domestic region of a country.

02

Explanation

That is GDP is a sign of financial action and not monetary government assistance. In any case, including the scope of metaphorical dashboard monetary markers like workforce development, instructive fulfilment, paces of business and joblessness, public monetary and non-monetary riches and maintainability of regular assets in a solitary measure, for example, GDP will be troublesome. It will prompt more assessment issues as these pointers are dissimilar to labour and products don't have a market cost which makes their valuation simple.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Explain the expenditure and income approaches to tabulating GDP.

Each year after a regular spring cleaning, Maria spruces up her home a little by retexturing and repainting the walls of one room in her house. In a given year, she spends \(25on magazines to get ideas about wall textures and paint shades, \)45on newly produced texturing materials and tools, \(35on new paintbrushes and other painting equipment, and \)175on newly produced paint. Normally, she preps the walls, a service that a professional walltexturing specialist would charge \(200to do, and applies two coats of paint, a service that a painter would charge \)350to do, on her own.

a. When she purchases her usual set of materials and does all the work on her home by herself in a given spring, how much does Maria's annual spring texturing and painting activity contribute to GDP?

b. Suppose that Maria hurt her back this year and is recovering from surgery. Her surgeon has instructed her not to do any texturing work, but he has given her the go-ahead to paint a room as long as she is cautious. Thus, she buys all the equipment required to both texture and paint a room. She hires someone else to do the texturing work but does the painting herself. How much would her spring painting activity add to GDP?

c. As a follow-up to part (b), suppose that as soon as Maria bends down to dip her brush into the paint, she realizes that painting will be too hard on her back after all. She decides to hire someone else to do all the work using the materials she has already purchased. In this case, how much will her spring painting activity contribute to GDP?

In the table for Problem 8-14, if 2020 is the base year, what is the price index for 2019? (Round decimal fractions to the nearest tenth.)

Suppose that in Figure 8-1, the sum total of all the goods and services produced during the relevant period-pairs of shoes, candy bars, digital devices, etc., all summed together-is 500 trillion units. The total dollar value of this flow of output is $20 trillion. The total amount of factors of production-labour, land, capital, entrepreneurship, all summed together-is 1 billion units. What is the flow of income-that is, the sum of wages, rents, interest, and profits?

Based on the information in Table 8-3, in what years was the economy in a recession? Explain briefly.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free