Why are goods and services counted in GDP at market value? Are there any disadvantages or problems

Question:

Why are goods and services counted in GDP at market value? Are there any disadvantages or problems in using market values to measure production?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics

ISBN: 978-0321675606

6th Canadian Edition

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone

See More Books

Question Posted: Apr 01, 2016 03:44 AM

See More Questions

Goods and services that are not sold in markets, such as food produced and consumed at home, are generally not included in GDP. Can you think of how this might cause the numbers in the second column...
Multiple Choice Questions: 1. GDP is defined as the? a. Value of all final goods and services produced in a country in a period of time. b. Value of all final goods produced in a country in a period...
Multiple Choice Questions: 1. Investment includes? a. Fixed investment. b. Fixed investment plus government investment. c. Fixed investment plus additions to business inventories. d. Fixed investment...
Ari Goldstein issued $300,000 of 11%, five-year bonds payable on January 1, 2024. The market interest rate at the date of issuance was 10%, and the bonds pay interest semiannually. Requirements 1....
List three substantive analytical procedures that the auditor might use in auditing the income statement.
Instead of the results in problem 8.4, consider the results reported below: Assume the results reported in problem 8.4 hold, except that a difference existed among budgeted (static) enrollment and...
Bistro Servers The RestaurantTips data file comes from a sample of 157 bills at a small bistro/wine bar. Three different servers (labeled A, $\mathrm{B}$, and $\mathrm{C}$ ) worked on the nights the...
The ownermanager of Good Guys Enterprises obtains utility from income (profit) and from having the firm behaves in a socially conscious manner, such as making charitable contributions or civic...
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $138,800 of materials. b....
Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2017. Alfred and Beulah will file a joint return for 2019. Alfred's Social Security number is 111-11-1109. Beulah's Social...
What are the three approaches to measuring economic activity? Why do they give the same answer?
What is the difference between intermediate and final goods and services? In which of these categories do capital goods, such as factories and machines, fall? Why is the distinction between...
What is another term for a subquery? a. Outer query b. Inner query c. Union query d. Aggregate query
What are advantages of computer applications for optimization?
Do you expect to be able to observe the diffraction of light through $(a)$ the front door to your house; $(b)$ the holes in a button; (c) the gaps between threads of the fabric of an umbrella?
Does online success as an e-commerce company automatically translate into successful bricks-and-mortar commerce? Discuss and research the strategy behind Amazon's recent decision to open retail...
Identify and define each of the three categories of advertising based on their purpose. Which type of advertising might marketers use for the following products? a. cars b. virtual reality headset c....
Data is given below; use least square method to find the linear model. $x$ 3 5 7 9 10 15 20 22 25 $y$ 12 18 22 32 38 53 67 72 78
Why is it difficult to define a market precisely?
Refer to the table to answer the following questions. Year Nominal GDP (in billions) Total Federal Spending (in billions) Real GDP (in billions) Real Federal Spending (in billions) 2000 9,817 578...
Use factoring by grouping to solve the following equation. 3-522-16r+80=0 Enter the solutions, separated by commas if necessary. Do not use a plus-minus () sign when entering separate answers....
What are some intervention policies that make provisions for destitute college or university students in Ethiopia? Please provide Examples
Develop a simple application of two- variable linear programming problem to find an optimal product mix in a 'realistic' context. Specify the resources to be considered requirements, and the market...

Why are goods and services counted in GDP at market value? Are there any disadvantages or problems

Question:

Step by Step Answer:

Goods are measured at market value in GDP accounting so that different types of ...View the full answer

Macroeconomics

Students also viewed these Economics questions