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DQ #1. An economy's output is also its income because its output is calculated as the measurement of all the goods and services produced by the economy, and also being channeled back into the economy in the form of purchases in other economic sectors, savings, and investments. Expenditures measured in the form of GDP tally the production of goods and services on U.S. soil while GNP measures the production of goods and services produced anywhere by the U.S. residents. Both can generate income for U.S. companies and consumers that can be funneled back into the economy in exchange for other durable and nondurable goods, and services, as well as reinvested into other sectors. However, imported goods are subtracted out of the calculation of a national income, because the funds generated by the foreign production companies will be funneled back to the base, foreign nation. U.S. consumers may buy foreign goods, but the goods do not generate income for the nation as a whole.
DQ#2 National income accountants compare the market value of the total outputs over various years rather than calculate the physical volumes of goods in production because the market value takes into consideration the depreciation of the goods and the fact that not all goods produced by sellers are bought by consumers at a fair market value. Simply because there is a high volume of production does not mean that all goods are going to be purchased at a rate that recompenses the seller for the costs of production. Thus the problem posed by any comparison of market value vs. production volume is that of the seller gaining a fair market value, and also the fact that the longer stocks remain on the shelves, the lower their market value by and large, and the lower the price they are able to command. By taking depreciation into consideration when figuring market values of goods produced, national accountants are able to mitigate this inaccuracy of overvaluing mass production. Quality as well as quantity must always be taken into consideration when evaluating national income, and also overall economic health and circumstances.
market structures in detail and analyses the pricing strategies that the firms have to undertake when they operate in different regimes. The case study on Toyota is considered next, which indicates that firms competing in various structures does not only have to focus on price and quantity ceteris paribus, they also have to consider external and internal variables that have a bearing on these decisions. Introduction to Market Structures Market structures
Gross Domestic Product refers to the total worth of final goods and services produced within the nation in a given year. GDP accounts for the income generated as per the location it is earned instead of the owner of the factor of production. (Gross Domestic Product) GDP thus is an aggregate quantification of the total worth of the net output of all the domestic producing units of a nation or
He also created his own vocabulary, and proposed a model that was radically different. He branded his views as being from an entirely different school of economics from "classical" economics. Before Marx, there was essentially only one view of economics, with thought progressing in a relatively straight line. Marx introduced the notion of entirely new ideology. The result is that since then economics is no longer viewed as a
Country Study: China International trade and finance Exports Imports China Economic Issues with Trade Suggestions for improving trading practices COUNTRY STUDY: CHINA COUNTRY STUDY: CHINA COUNTRY STUDY: CHINA China, officially the People's Republic of China (PRC), is considered to be a sovereign state located in East Asia. It is the world's most populous country, with a population that has over 1.35 billion. The People Republic of China is a single-party state which is supervised by the Communist Party, with
For Hobbes, individuals must be a larger population beneath authority, and those individuals must, by the very nature of the perpetuation of the species, cede all rights and control over to that authority. It is also well within the natural rule of law that there might be abuses of authority, and that even though rebellion might be expected, it is up to the individual to maintain that the State
With the right management, it may be possible for Tanzania to build a sustainable tourist industry gradually based upon historically established trends and the traditional tourism industry transitioning to the new eco-friendly tourism types. These types take into consideration the needs of indigenous peoples and empower them by bringing traditional cultural practices to play in the effort to conserve wildlife and habitats. Works Cited: Bauldus, R.D. & Caldwell, A.E. (2004) Tourist