Would GDP increase when the environment is damaged by toxic spills and then the damage caused...

Would GDP increase when the environment is damaged by toxic spills and then the damage caused

by these spills is cleaned up?

Expert Solution

Would GDP increase when the environment is damaged by toxic spills and then the damage caused by these spills is cleaned up?

---

Yes, GDP would increase in this process.

Unfortunately, any component of GDP doesn't take into account any type of damage to the environment. GDP only takes into account production and related economic activity.

---

In this case, the generation of toxic waste is due to an economic activity, which should raise GDP.

The transportation of toxic waste is an economic activity, which should raise GDP.

The spilling of such waste is not an economic activity, and it doesn't affect GDP. The fact that it damages the environment is not accounted anywhere.

The cleaning activity of toxic waste is an economic activity, which should raise GDP. Cleaning up will also have other indirect effects on health, quality of life etc., which are not directly measured in GDP.

---

Thus, all the associated events, pre and post the spill, except the actual spill itself, are in favor of raising economic activity and GDP.

Rahul Sunny answered 9 months ago

In each of the following scenarios, calculate the total increase in US GDP this year caused...

In each of the following scenarios, calculate the total increase in US GDP this year caused directly by the given information An individual purchases an old used car from their friend for $6,000. They buy a new engine for the car for $1,000, replace the brakes for $500, and paint it for $200. They then sell the car for $10,000 A computer manufacturer in the US buys parts for its computer from Japan. The cost of these parts is $500....

The price level will increase while real GDP decreases when:

The price level will increase while real GDP decreases when: aggregate demand decreases/shifts to the left short-run aggregate supply decreases/shifts to the left short-run aggregate supply increases/shifts to the right aggregate demand increases/shifts to the right

Which would increase U.S. GDP? Group of answer choices An increase in charitable contributions by U.S....

Which would increase U.S. GDP? Group of answer choices An increase in charitable contributions by U.S. citizens A garage sale with all used items An increase in prices in the foreign market None of the above The average annual income for a female in Wisconsin is $38,000, while for a male it is $45,000. If prices rise by 2% next year and salaries of both females and males rise by 2% we can expect Group of answer choices No change...

What is the difference between GDP and GDP per capita? When and why would an economics...

What is the difference between GDP and GDP per capita? When and why would an economics what to use GDP vs GDP per a capita. In the example below let’s say that the economy’s real GDP is $50,000 in year 1 and $55,000 in year 2. What is the growth rate of its GDP? Assume that population was 100 in year 1 and 105 in year 2. What is the growth rate in GDP per capita? please only answer if...

Which of the following would make the price level increase and real GDP decrease?

Which of the following would make the price level increase and real GDP decrease? a. aggregate demand shifts right. b. long-run aggregate supply shifts right c. aggregate demand shifts left d. long-run aggregate supply shifts left

1. With an increase in real GDP, households’ demand for money would _____, thus the RBA...

1. With an increase in real GDP, households’ demand for money would _____, thus the RBA has to _____ money supply to the banking system. 2. How exactly can the RBA conduct an expansionary policy, and how can it be represented in AD-AS model? a. the RBA buys government bonds and Treasury bills, and AD curve shifts right. b. the RBA sells government bonds and Treasure bills, and AS curve shift right. c. the RBA increase the required-reserve ratio, and...

a) How would you classify unemployment caused by an increase in unemployment insurance (Structural, Frictional, or cyclical)?

a) How would you classify unemployment caused by an increase in unemployment insurance (Structural, Frictional, or cyclical)?b) Would an increase in the number of unemployment insurance suggest that it was becoming easier or more difficult for people to find jobs? Explain.

25. a) How would you classify unemployment caused by an increase in job firings (Structural, Frictional,...

25. a) How would you classify unemployment caused by an increase in job firings (Structural, Frictional, or Cyclical? b) Would an increase in the number of jobs firing suggest that it was becoming easier or more difficult for people to find jobs? Explain.

Which of the following items would be left out when calculating GDP?

Which of the following items would be left out when calculating GDP?Counted in GDP Not counted in GDP paying someone "off the books" to change the oil in your car changing the oil in your car yourself buying a birthday cake at the grocery store time spent lying in a hammock pirated software clothing produced in another country but bought at a local boutique tickets to see a movie about pirates salaries of public school teachers

Consider an increase in government spending on roads. 1. Explain which expenditure component of GDP would...

Consider an increase in government spending on roads. 1. Explain which expenditure component of GDP would be most affected. 2. Explain why this an expansionary or contractionary fiscal policy. 3. Explain how this spending may increase economic growth in the long run. 4. Explain what ‘crowding-out’ is using this spending on roads as an example. Provide two reasons to explain why in an ‘economic recession’ the government budget is pushed towards a deficit. c. Which is more likely to increase...

Question