Illustrate the example for double counting.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 7, Problem 1VQP

To determine

Illustrate the example for double counting.

Expert Solution & Answer

Explanation of Solution

Double counting is the problem of estimating the values of goods and services more than once. During the accounting process of GDP, it includes only the final values of goods and services in an economy to avoid the problem of ‘double counting’. That means, the final value of products also includes the intermediate values of products.

For example, a firm sells cars at a cost of $28,000, and the company paid $250 for tires and $10,000 for other parts. Including all intermediate goods, the car will sell at the price of $28,000 and not by $38,250 ($28,000+ $250+$10,000). Hence, the GDP avoids double counting problem by including only the final values of goods and services.

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!

Students have asked these similar questions

At the beginning of the year, the market for portable electric fans was in equilibrium. In June, a summer heat wave hit. What effect does the heat wave have on the market for fans? Drag the appropriate part(s) of the graph to show the effect on the market for portable fans. To refer to the graphing tutorial for this question type, please click here. Price 17 OF 21 QUESTIONS COMPLETED f4 Q Search f5 f6 f7 CO hp fg 6 M366 W ins f12 f11 f10 SUBMIT ANSWER ENG 4x

In the context of investment risk, what does "diversification" mean? A) Spreading investments across various assets to reduce riskB) Investing in a single asset to maximize returnsC) Increasing investment in high-risk assetsD) Reducing the number of investments to focus on high-performing ones

At the 8:10 café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (that is she cannot price discriminate). Students with early classes Students without early classes Coffee 70 60 Banana 50 100 The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling separately? HINT: if you sell the bundle, can you make more by offering coffee separately? If so, what price should be charged for the bundle? (Show calculations)

Answer 2

Question

Chapter 7, Problem 1VQP

To determine

Illustrate the example for double counting.

Expert Solution & Answer

Explanation of Solution

Double counting is the problem of estimating the values of goods and services more than once. During the accounting process of GDP, it includes only the final values of goods and services in an economy to avoid the problem of ‘double counting’. That means, the final value of products also includes the intermediate values of products.

For example, a firm sells cars at a cost of $28,000, and the company paid $250 for tires and $10,000 for other parts. Including all intermediate goods, the car will sell at the price of $28,000 and not by $38,250 ($28,000+ $250+$10,000). Hence, the GDP avoids double counting problem by including only the final values of goods and services.

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 3

Question

Chapter 7, Problem 1VQP

To determine

Illustrate the example for double counting.

Expert Solution & Answer

Explanation of Solution

Double counting is the problem of estimating the values of goods and services more than once. During the accounting process of GDP, it includes only the final values of goods and services in an economy to avoid the problem of ‘double counting’. That means, the final value of products also includes the intermediate values of products.

For example, a firm sells cars at a cost of $28,000, and the company paid $250 for tires and $10,000 for other parts. Including all intermediate goods, the car will sell at the price of $28,000 and not by $38,250 ($28,000+ $250+$10,000). Hence, the GDP avoids double counting problem by including only the final values of goods and services.

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 4

Question

Chapter 7, Problem 1VQP

To determine

Illustrate the example for double counting.

Expert Solution & Answer

Explanation of Solution

Double counting is the problem of estimating the values of goods and services more than once. During the accounting process of GDP, it includes only the final values of goods and services in an economy to avoid the problem of ‘double counting’. That means, the final value of products also includes the intermediate values of products.

For example, a firm sells cars at a cost of $28,000, and the company paid $250 for tires and $10,000 for other parts. Including all intermediate goods, the car will sell at the price of $28,000 and not by $38,250 ($28,000+ $250+$10,000). Hence, the GDP avoids double counting problem by including only the final values of goods and services.

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 7, Problem 1VQP

To determine

Illustrate the example for double counting.

Expert Solution & Answer

Explanation of Solution

Double counting is the problem of estimating the values of goods and services more than once. During the accounting process of GDP, it includes only the final values of goods and services in an economy to avoid the problem of ‘double counting’. That means, the final value of products also includes the intermediate values of products.

For example, a firm sells cars at a cost of $28,000, and the company paid $250 for tires and $10,000 for other parts. Including all intermediate goods, the car will sell at the price of $28,000 and not by $38,250 ($28,000+ $250+$10,000). Hence, the GDP avoids double counting problem by including only the final values of goods and services.

Answer 6

Chapter 7, Problem 1VQP

To determine

Illustrate the example for double counting.

Expert Solution & Answer

Explanation of Solution

Double counting is the problem of estimating the values of goods and services more than once. During the accounting process of GDP, it includes only the final values of goods and services in an economy to avoid the problem of ‘double counting’. That means, the final value of products also includes the intermediate values of products.

For example, a firm sells cars at a cost of $28,000, and the company paid $250 for tires and $10,000 for other parts. Including all intermediate goods, the car will sell at the price of $28,000 and not by $38,250 ($28,000+ $250+$10,000). Hence, the GDP avoids double counting problem by including only the final values of goods and services.

Answer 7

Chapter 7, Problem 1VQP

To determine

Illustrate the example for double counting.

Answer 8

Expert Solution & Answer

Explanation of Solution

Double counting is the problem of estimating the values of goods and services more than once. During the accounting process of GDP, it includes only the final values of goods and services in an economy to avoid the problem of ‘double counting’. That means, the final value of products also includes the intermediate values of products.

For example, a firm sells cars at a cost of $28,000, and the company paid $250 for tires and $10,000 for other parts. Including all intermediate goods, the car will sell at the price of $28,000 and not by $38,250 ($28,000+ $250+$10,000). Hence, the GDP avoids double counting problem by including only the final values of goods and services.