Question

Does GDP measurement include non-market activities and non-reported income? if so, do these underestimate or overestimate...

Does GDP measurement include non-market activities and non-reported income? if so, do these underestimate or overestimate GDP measure?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The GDP measures total value of the goods and service in terms of the monetary value.The non-market or no-reported income not included in GDP

The following factors are non-market activities

  • The goods produced with hobbies example Gardening
  • The income earned by the other source example school teacher earns extra income by providing tuition to the children it is not included in the GDP
  • The exchange of one to another without money.

These are the non-market activities because it does not produce any value if it includes it overestimates the GDP.

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
DONAT Company reported taxable income of $500,000 in 2020. This amount does not include a $5,000...
DONAT Company reported taxable income of $500,000 in 2020. This amount does not include a $5,000 nondeductible (for tax purposes) entertainment expense. If you start with taxable income of $500,000 what adjustment will be necessary for the $5,000 entertainment expense for purposes of calculating E&P? a. a $5,000 addition. b. a $5,000 deduction. c. no adjustment. d. none of the above.
1. Why do we need to add back to net income non-cash transactions and changes in...
1. Why do we need to add back to net income non-cash transactions and changes in working capital assets when using the indirect method? 2. A company used cash for both operating and investing activities, but had a positive cash flow from financing activities. What does this cash flow pattern suggest about this company? 3. Sales for Harlem Tool & Die during 20X1 was $600,000, 75% of them on credit and 25% for cash. During the year, accounts receivable increased...
Suppose GDP is 16.0 trillion and aggregate expenditures are 20.6 trillion. How does inventory change? Calculate...
Suppose GDP is 16.0 trillion and aggregate expenditures are 20.6 trillion. How does inventory change? Calculate the change in the level of inventory, if any. Provide your answer in dollars measured in trillions rounded to two decimal places. Use a negative sign "-" to indicate a decrease in inventory but do not include any other symbols, such as "$," "=," "%," or "," in your answer. Suppose for every 10 thousand dollar increase in income, consumption increases by 9.0 thousand...
Which of the following statements is CORRECT? a. Operating income is derived from the firm's regular...
Which of the following statements is CORRECT? a. Operating income is derived from the firm's regular core business. Operating income is calculated as Revenues less Operating costs. Operating costs do not include interest or taxes. b. Depreciation reduces a firm's cash balance, so an increase in depreciation would normally lead to a reduction in the firm's cash flow. c. Depreciation is not a cash charge, so it does not have an effect on a firm's reported profits. d. The more...
The comparative financial statements of the Summer Company are as follows. The market price of the...
The comparative financial statements of the Summer Company are as follows. The market price of the Summer Company common stock was $36 on December 31, 2016 and $11.20 on December 31, 2017.           Summer Company Comparative Balance Sheet December 31, 2017, 2016 and 2015 ASSETS 2017 2016 2015 Current Assets Cash $176,200 $253,100 $26,500 Accounts Receivable 238,850 31,850 67,350 Merchandise Inventory 62,500 42,500 130,000 Prepaid Expenses 700 1,700 2,200 Total Current Assets $478,250 $329,150 $226,050 Plant Assets 696,100 726,100 786,100...
If you are not familiar with Accounting and Taxation, please do not take this question. Ch4...
If you are not familiar with Accounting and Taxation, please do not take this question. Ch4 Q2 A variety of investments is available in the marketplace. What types of investors (clienteles) are most appropriate for (a) municipal bonds (b) hi growth, low dividend stocks (c) lower growth, high dividend stocks? Chapter Summary Different economic activities are taxed differently, even if undertaken in the same organizational form. The unequal taxation of returns affects the demand for investment and thereby affects the...
Why do you suppose the marketing of the tax shelters at KPMG grew so fast? a.Transformational...
Why do you suppose the marketing of the tax shelters at KPMG grew so fast? a.Transformational leadership b. Moral manager c. Social learning theory d. Moral intensity [The following information applies to the question.] In Chapter 4 we discussed the artificial tax shelter arrangements developed by KPMG LLP for wealthy clients that led to the settlement of a legal action with the Department of Treasury and the Internal Revenue Service. On August 29, 2005, KPMG admitted to criminal wrongdoing and...
Analysis: This section should include the issue register as a bare minimum, but may include also...
Analysis: This section should include the issue register as a bare minimum, but may include also why-why diagrams, a Pareto chart, a waste table and/or value-added analysis table. Flow analysis or simulation of this case study might be possible but might require making a lot of assumptions given the provided data. The first part of the project: Introduction    Walmart has continued to retain the top position on the Fortune 500 list for a consecutive fifth year. The brand has...
In February 2012, the Pepsi Next product was launched into the US market. This case study...
In February 2012, the Pepsi Next product was launched into the US market. This case study provides students with an interesting insight into PepsiCo’s new product process and some of the challenging decisions that they faced along the way. Pepsi Next Case Study Introduction Pepsi Next was launched by PepsiCo into the US market in February 2012, and has since been rolled out to various international markets (for instance, it was launched in Australia in September 2012). The new product...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT