Use of market value while calculating GDP .

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Answer 1

Question

Chapter 5, Problem 1RQ

To determine

Use of market value while calculating GDP.

Expert Solution & Answer

Explanation of Solution

The gross domestic product is the summation of the market value of all the final goods and services produced within the economy in a financial year. There will be a wide variety of goods and services produced in the economy such as apples, oranges, grapes, automobiles, electronic items and so on. Thus, adding them together will be an impossible task. This issue is handled through the use of aggregating the market values of each goods. This helps to aggregate the value and calculate the GDP value of the economy. This is the reason why the economists use the market values to calculate the GDP.

The weight giving process for the high valued commodities than the low valued commodities is because of the fact of the consumer preferences. The price of each item is a measure of the value that it purchasers place on it. Higher valued goods place higher worth than the low priced commodity. This is the rationale behind giving higher weight for the higher priced commodities by the economists.

Economics Concept Introduction

Gross Domestic Product: The Gross Domestic Product (GDP) is the sum total of the money value of all the final goods and services produced within the economy in a given period of time, which is usually a financial year.

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Answer 2

Question

Chapter 5, Problem 1RQ

To determine

Use of market value while calculating GDP.

Expert Solution & Answer

Explanation of Solution

The gross domestic product is the summation of the market value of all the final goods and services produced within the economy in a financial year. There will be a wide variety of goods and services produced in the economy such as apples, oranges, grapes, automobiles, electronic items and so on. Thus, adding them together will be an impossible task. This issue is handled through the use of aggregating the market values of each goods. This helps to aggregate the value and calculate the GDP value of the economy. This is the reason why the economists use the market values to calculate the GDP.

The weight giving process for the high valued commodities than the low valued commodities is because of the fact of the consumer preferences. The price of each item is a measure of the value that it purchasers place on it. Higher valued goods place higher worth than the low priced commodity. This is the rationale behind giving higher weight for the higher priced commodities by the economists.

Economics Concept Introduction

Gross Domestic Product: The Gross Domestic Product (GDP) is the sum total of the money value of all the final goods and services produced within the economy in a given period of time, which is usually a financial year.

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Answer 3

Question

Chapter 5, Problem 1RQ

To determine

Use of market value while calculating GDP.

Expert Solution & Answer

Explanation of Solution

The gross domestic product is the summation of the market value of all the final goods and services produced within the economy in a financial year. There will be a wide variety of goods and services produced in the economy such as apples, oranges, grapes, automobiles, electronic items and so on. Thus, adding them together will be an impossible task. This issue is handled through the use of aggregating the market values of each goods. This helps to aggregate the value and calculate the GDP value of the economy. This is the reason why the economists use the market values to calculate the GDP.

The weight giving process for the high valued commodities than the low valued commodities is because of the fact of the consumer preferences. The price of each item is a measure of the value that it purchasers place on it. Higher valued goods place higher worth than the low priced commodity. This is the rationale behind giving higher weight for the higher priced commodities by the economists.

Economics Concept Introduction

Gross Domestic Product: The Gross Domestic Product (GDP) is the sum total of the money value of all the final goods and services produced within the economy in a given period of time, which is usually a financial year.

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Answer 4

Question

Chapter 5, Problem 1RQ

To determine

Use of market value while calculating GDP.

Expert Solution & Answer

Explanation of Solution

The gross domestic product is the summation of the market value of all the final goods and services produced within the economy in a financial year. There will be a wide variety of goods and services produced in the economy such as apples, oranges, grapes, automobiles, electronic items and so on. Thus, adding them together will be an impossible task. This issue is handled through the use of aggregating the market values of each goods. This helps to aggregate the value and calculate the GDP value of the economy. This is the reason why the economists use the market values to calculate the GDP.

The weight giving process for the high valued commodities than the low valued commodities is because of the fact of the consumer preferences. The price of each item is a measure of the value that it purchasers place on it. Higher valued goods place higher worth than the low priced commodity. This is the rationale behind giving higher weight for the higher priced commodities by the economists.

Economics Concept Introduction

Gross Domestic Product: The Gross Domestic Product (GDP) is the sum total of the money value of all the final goods and services produced within the economy in a given period of time, which is usually a financial year.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem 1RQ

To determine

Use of market value while calculating GDP.

Expert Solution & Answer

Explanation of Solution

The gross domestic product is the summation of the market value of all the final goods and services produced within the economy in a financial year. There will be a wide variety of goods and services produced in the economy such as apples, oranges, grapes, automobiles, electronic items and so on. Thus, adding them together will be an impossible task. This issue is handled through the use of aggregating the market values of each goods. This helps to aggregate the value and calculate the GDP value of the economy. This is the reason why the economists use the market values to calculate the GDP.

The weight giving process for the high valued commodities than the low valued commodities is because of the fact of the consumer preferences. The price of each item is a measure of the value that it purchasers place on it. Higher valued goods place higher worth than the low priced commodity. This is the rationale behind giving higher weight for the higher priced commodities by the economists.

Economics Concept Introduction

Gross Domestic Product: The Gross Domestic Product (GDP) is the sum total of the money value of all the final goods and services produced within the economy in a given period of time, which is usually a financial year.

Answer 6

Chapter 5, Problem 1RQ

To determine

Use of market value while calculating GDP.

Expert Solution & Answer

Explanation of Solution

The gross domestic product is the summation of the market value of all the final goods and services produced within the economy in a financial year. There will be a wide variety of goods and services produced in the economy such as apples, oranges, grapes, automobiles, electronic items and so on. Thus, adding them together will be an impossible task. This issue is handled through the use of aggregating the market values of each goods. This helps to aggregate the value and calculate the GDP value of the economy. This is the reason why the economists use the market values to calculate the GDP.

The weight giving process for the high valued commodities than the low valued commodities is because of the fact of the consumer preferences. The price of each item is a measure of the value that it purchasers place on it. Higher valued goods place higher worth than the low priced commodity. This is the rationale behind giving higher weight for the higher priced commodities by the economists.

Economics Concept Introduction

Gross Domestic Product: The Gross Domestic Product (GDP) is the sum total of the money value of all the final goods and services produced within the economy in a given period of time, which is usually a financial year.

Answer 7

Chapter 5, Problem 1RQ

To determine

Use of market value while calculating GDP.

Answer 8

Expert Solution & Answer

Explanation of Solution

The gross domestic product is the summation of the market value of all the final goods and services produced within the economy in a financial year. There will be a wide variety of goods and services produced in the economy such as apples, oranges, grapes, automobiles, electronic items and so on. Thus, adding them together will be an impossible task. This issue is handled through the use of aggregating the market values of each goods. This helps to aggregate the value and calculate the GDP value of the economy. This is the reason why the economists use the market values to calculate the GDP.

The weight giving process for the high valued commodities than the low valued commodities is because of the fact of the consumer preferences. The price of each item is a measure of the value that it purchasers place on it. Higher valued goods place higher worth than the low priced commodity. This is the rationale behind giving higher weight for the higher priced commodities by the economists.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Gross Domestic Product: The Gross Domestic Product (GDP) is the sum total of the money value of all the final goods and services produced within the economy in a given period of time, which is usually a financial year.

Answer 12

Ch. 5 - Prob. 1RQ Ch. 5 - Prob. 2RQ Ch. 5 - Prob. 3RQ Ch. 5 - Prob. 4RQ Ch. 5 - Prob. 5RQ Ch. 5 - Prob. 6RQ Ch. 5 - Prob. 7RQ Ch. 5 - Prob. 1P Ch. 5 - Prob. 2P Ch. 5 - Prob. 3P

Use of market value while calculating GDP .

Use of market value while calculating GDP.

Explanation of Solution

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