Question

When GDP statistics are calculated, care must be taken to avoid double counting. Describe the two...

When GDP statistics are calculated, care must be taken to avoid double counting. Describe the two major categories of goods are excluded to prevent double counting?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

- GDP (gross domestic product) takes into consideration all the final products and services which are produced in a nation annually. Therefore, in order to avoid double counting, the sale of used goods for example, used cars, are not included in the computation of gross domestic product as they have already been counted at the time of manufacture. Therefore, their resale is not counted.

- In order to avoid double counting, GDP only includes the final or finished goods, which means that the raw materials required for the production of those goods are not counted. If we include both in the computation of the GDP, then there will be a problem of double counting. The raw materials (intermediate products) are not included as their value is already included in the price of the final goods purchased by the consumers.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
17) To avoid double counting in the computation of GDP, only the value of goods are...
17) To avoid double counting in the computation of GDP, only the value of goods are included A final B used C intermediate D investment
The best reason economists take only final goods and services into account when calculating GDP is...
The best reason economists take only final goods and services into account when calculating GDP is that this is the way things have always been done, but there is no particular reason why. they want to avoid the problem of final counting. they want to avoid the problem of double counting. this is the only way it can be done. PreviousNext
The following statistics were calculated from two random samples taken from two populations following a normal...
The following statistics were calculated from two random samples taken from two populations following a normal distribution: S1^2=350, n1=30, S2^2=700, n2=30 1. Can you infer that the two parent variances are different at a 5% significance level? 2. If the number of samples is n1 = 15 and n2 = 15, repeat question 1. 3. Describe what happens to the test statistic when the number of samples decreases.
Describe the challenges faced when a spouse must care for a partner when the partner is...
Describe the challenges faced when a spouse must care for a partner when the partner is chronically ill or has Alzheimer’s disease.
when using Beer's Law, there are several limitations that must be taken into account. Describe 5...
when using Beer's Law, there are several limitations that must be taken into account. Describe 5 factors that cause this law to depart from linearity.
First, based upon the AHA guidelines, describe two actions, when implemented, can improve acute stroke care....
First, based upon the AHA guidelines, describe two actions, when implemented, can improve acute stroke care. Second, identify two interprofessional team members, who together with the RN, can assist in improving the outcomes for the client who has suffered an acute stroke.
Consider the following summary statistics, calculated from two independent random samples taken from normally distributed populations....
Consider the following summary statistics, calculated from two independent random samples taken from normally distributed populations. Sample 1 x¯1=20.87 s21=2.01 n1=16 Sample 2 x¯2=24.00 s22=3.36 n2=15 Test the null hypothesis H0:μ1=μ2against the alternative hypothesis HA:μ1<μ2. a) Calculate the test statistic for the Welch Approximate t procedure. Round your response to at least 3 decimal places. b) The Welch-Satterthwaite approximation to the degrees of freedom is given by df = 26.366427. Using this information, determine the range in which the p-value...
In the digital age of marketing, special care must be taken to make sure that programmatic...
In the digital age of marketing, special care must be taken to make sure that programmatic ads appearing on websites align with a company's strategy, culture and ethics. For example, in 2017, Nordstrom, Amazon and Whole Foods each faced boycotts from social media users when automated ads for these companies showed up on the Breitbart website (ChiefMarketer.com). It is important for marketing professionals to understand a company's values and culture. The following data are from an experiment designed to investigate...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a balanced budget B. maximum​ employment, stable​ prices, and moderate​ long-term interest rates C. a stable U.S. dollar on foreign exchange markets and moderate​ long-term and​ short-term interest rates D. an economic environment in which investment in U.S. stock and money markets is encouraged The Federal Reserve Act says that the Fed must use​ ______ to achieve its objectives. A. bank reserves B. commercial banks...
1.Conclusions from the classic Kasser and Ryan study on the “dark side of the American dream”...
1.Conclusions from the classic Kasser and Ryan study on the “dark side of the American dream” a. only apply to affluent cultures. b. are specific to the United States and Canada. c. are limited to Western cultures. d. have been replicated in a variety of different cultures 2.Self-regulation and control have to do with the ________ of goal achievement. a. “what” b. “why” c. “how” d. “when” 3.Compared to other motivational concepts, such as needs, values, and motives, Karolyi argues...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT