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Luxury cars contribute to GDP because they are made in relatively small factories and with relatively small amounts of people. Because luxury cars have many patents, it is difficult for another car company to copy that car, therefore you have eliminated the competition and you can charge as much as you want for your car, people will still buy it, simply because there are so few of it. You asked why a luxury contributed "more" to GDP, but you didn't say what you are comparing it to. However, I hope these few facts help you.
What else can I help you with?
Which contributes more to GDP the production of a economy car or the production of a luxury car?
By definition GDP is the market value of produced goods and services provided in the economy usually in one year. So the production of a luxury car contributes more to GDP than the production of an economy car because the luxury car has a higher market value.
Why would staying in a penthouse suit contribute more to GDP than staying in a standard room?
In general, yes., the GDP would be higher.
How much does fishing contribute to the GDP of Pakistan?
fishing contributes 0.9% to the GDP of Pakistan
Who determines a country's GDP?
all of the resources of production together produce the GDP
How much GDP does outbound tourism contribute?
i think the oputdound tourism spends more money then all of us
How does tourism contribute to GDP?
Services rendered to tourism such as building hotels is an activity that qualifies as a GDP activity.
What is Albania GDP?
Growth domastic production
Which contributes more to GDP the production of an economy car or the production of a luxury car?
Luxury car as the auto maker makes more profit on the expensive car, thus putting more back into the economy.
What is the value-added approach in the GDP definition and how does it contribute to measuring economic output?
The value-added approach in GDP measures the contribution of each stage of production to the economy. It calculates the value added by each business by subtracting the cost of inputs from the value of outputs. This approach helps avoid double counting and provides a more accurate measure of economic output by focusing on the added value at each stage of production.
What investment in newer technology and better factories and buildings would help GDP?
Investing in newer technology, such as automation, data analytics, and artificial intelligence, can enhance productivity and efficiency in industries. This can lead to increased production and output, ultimately boosting GDP. Additionally, upgrading and modernizing factories and buildings can improve infrastructure, create job opportunities, and attract more businesses, which may contribute to economic growth.
What percent of mutual funds contribute to US GDP?
45%
What does GDP affect?
GDP is a measure, a better question is what affects GDP. GDP is, specifically a measure of a country's production. A higher GDP signals growth, efficient production, it may affect policy decisions, it may affect Federal Reserve decisions (money supply and interest rate, target inflation rate etc.)
