1. Explain the factors that the measurement of GDP ignores. 2. Explain the difference between a...

1. Explain the factors that the measurement of GDP ignores.

2. Explain the difference between a positive and a negative externality along with an example

Expert Solution

1.GDP which is the production of final goods and services within the boundary of a country in a financial year

Many Economists think that it is not a complete tool for measuring the economic health as it lacks so many important factors like-

Gini coefficient

Carbon footprint index

Happiness index etc

2.

An externality can be defined as when there is transition between the first two parties and the effect seen on the third party

If the effect onthe third part is negative then the externality is called negative externality and if the effect seen on the third party is positive then the externality is called positive externality

The example of negative externality can be air pollution

For example suppose a person is driving car but he is intentionally or unintentionally is harming the nearby people walking by him

Example of positive externality can be let's say in an colony a person is having beautiful garden then the beautiful smell of the garden will be feel by the neighbors living with that person

Rahul Sunny answered 6 months ago

Explain the difference between: final and intermediate goods, GDP and GNP, GDP and NDP, and, between...

Explain the difference between: final and intermediate goods, GDP and GNP, GDP and NDP, and, between In and Ig (net private domestic investment and gross private domestic investment)

What is GDP? What is the difference between the nominal GDP and real GDP? Explain why...

What is GDP? What is the difference between the nominal GDP and real GDP? Explain why comparing the GDP’s of various nations might not tell you which nation’s people are better off.

Explain in detail 1. What is the difference between quantity demanded and demand? Explain the factors...

Explain in detail 1. What is the difference between quantity demanded and demand? Explain the factors that change the demand. 2. What is the relationship between the bowed out shape of the production possibilities frontier and the increasing opportunity cost of a good as more of it is produced?

1. Explain the difference between the Expenditure and Income Approaches to Gross National Product (GDP) and...

1. Explain the difference between the Expenditure and Income Approaches to Gross National Product (GDP) and what their respective component elements are, and why they are supposed to be equal to each other (if all the correct numbers have been assigned to each of the categories on the two sides). 2. In 2019, it was estimated that people in the civilian or private sector may have purchased over 14 million firearms in the United States. And the total dollar value...

1. What’s the difference between real and nominal GDP? 2. What are the four elements of...

1. What’s the difference between real and nominal GDP? 2. What are the four elements of GDP? Which is the most important? 3. What is the formula for the expenditures method and does it involve all income earned from sources in a country, or all expenses incurred from sources in a country?

1) Describe in detail the measurement of GDP. Document what GDP does not measure. Is GDP...

1) Describe in detail the measurement of GDP. Document what GDP does not measure. Is GDP a good measure of the standard of living and the quality of life of a society? Justify your answer. How would you suggest improving GDP to better measure standard of living and quality of life or would you suggest an entirely measure or set of measure be developed? Explain.

What is difference between actual GDP & potential GDP? If actual GDP > Potential GDP are...

What is difference between actual GDP & potential GDP? If actual GDP > Potential GDP are we in boom (expansion) or bust (recession)? If actual GDP > potential GDP is unemployment higher than NAROU or lower? What is the danger of actual GDP > potential GDP? The economy can avoid this danger if what happens?

What is the relationship between religion and gdp? List/explain 4 factors that contribute to this.

Can you give an example of the difference between the GDP deflator and CPI 1.GDP deflator...

Can you give an example of the difference between the GDP deflator and CPI 1.GDP deflator reflects the prices of all goods produced domescally,whereas CPI reflects the price of all goods bought by consumers And another example of 2.CPI is computed using a fixed basket ,whereas the gdp deflator allows the basket of goods change over time.

The GDP is an inaccurate measure of wellbeing because: It ignores the black-market "It places no...

The GDP is an inaccurate measure of wellbeing because: It ignores the black-market "It places no value on activites takes place outside of the marketplace, like giing to the park with the kids" Envirnmental degradation is not accounted for All of the above Which of the following items is counted toward US GDP Computer software written in Seattle and sold in India Stock sold in the US stockmarket by a US company to a US buyer. Taxes collected by the...

Question