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Why are goods and services counted in GDP at market price.are there any disadvantage in using market price to measure production?
Goods and services are counted in GDP at market prices because this approach reflects the actual economic value exchanged in the marketplace, providing a clear indication of a country's economic activity. However, using market prices can have disadvantages, such as overlooking non-market transactions (e.g., household labor) and failing to account for externalities, which can distort the true economic well-being and resource allocation. Additionally, market prices can be influenced by inflation, leading to potential misinterpretations of real growth.
Product market are where individuals spend their incomes on goods and services True Or False?
True.
In a market economy are producers also consumers of goods and services?
True
Does the The strength of the economy depends on the balance of production and consumption of goods and services?
true
True or false all goods and services are scarce?
True. Because all resources are limited and become scarce.
Why are goods and services counted in GDP at market price.are there any disadvantage in using market price to measure production?
Goods and services are counted in GDP at market prices because this approach reflects the actual economic value exchanged in the marketplace, providing a clear indication of a country's economic activity. However, using market prices can have disadvantages, such as overlooking non-market transactions (e.g., household labor) and failing to account for externalities, which can distort the true economic well-being and resource allocation. Additionally, market prices can be influenced by inflation, leading to potential misinterpretations of real growth.
Why do externalities arise?
Externalities arise because the actions of individuals or firms affect others who are not directly involved in a transaction, leading to costs or benefits that are not reflected in market prices. These effects can be positive (benefits) or negative (costs), such as pollution impacting nearby residents or a well-maintained garden enhancing neighborhood property values. The lack of appropriate compensation or regulation for these external effects often results in market failures, as the true social costs or benefits are not accounted for in decision-making. Consequently, externalities can lead to overproduction or underproduction of goods and services.
Product market are where individuals spend their incomes on goods and services True Or False?
True.
Both goods and services are counted as part of a nation's wealth?
True
Is VAT on goods sold and services rendered input VAT?
TRUE
In a market economy are producers also consumers of goods and services?
True
Does the The strength of the economy depends on the balance of production and consumption of goods and services?
true
True or false all goods and services are scarce?
True. Because all resources are limited and become scarce.
Which of the following is true about goods and services?
The answer is D. Assuming the options are: A. Goods are generally more expensive to the consumer. B. Goods and services are often sold by the consumer. C. Services are usually provided at a distance while goods are produced locally. D. Goods are physical while services are intangible.
Economic growth occurs when more resources are available true or false?
True Economic growth occurs when there is an increase in the production of goods and services (GDP) of a certain period of time. With more resources available more goods or services can be produced
Economic growth occurs when a nation's total output of goods and services increases over time. True or False?
true
A socialist form of government is where the goods and services are equally shared and the political power is distributed among the people?
no its not true Yes, it's true.
