Please Help Me with Question no. 5 (Section 2.5) & Analytical Question no. 3 Ple
ID: 1101262 • Letter: P
Question
Please Help Me with Question no. 5 (Section 2.5) & Analytical Question no. 3
Please show all work
of national income was also shifting? Why? Would you expect the distribution of income to become more unequal? Suppose the trends were due to demographic shifts, more specifically to a rapidly ageing population. Would this change your answers? Do you think it is easier to evaluate the relative welfare of different generations of people in one country (by comparing per capita GDP over time), or to compare the relative standards of living in different countries at a point in time (by converting current per capita GDPs into a common currency)? How would you treat the activities of criminals in GDP accounting? What about the activities of the police force? The Beatles claimed: 'I don't care too much for money, money can't buy me love.' (Shortly after first making this claim, they joined the ranks of the richest people in the world.) Does their claim undermine the use of GDP to measure welfare? Analyse the recent sectoral composition (agriculture, industry and services as a percentage of GDP) of output GDP for a selection of countries of your choice, using either national sources or the World Banks World Development Indicators (http://data.worldbank.org/data-catalog rightarrow WD1 databank). Is the sectoral breakdown what you would expect given those countries' level of development (see Figure 2.2)?Explanation / Answer
5.) Criminal activities are not included while calculating the GDP. Therefore activites like piracy, black market, corruption etc. are not included while doing GDP calculation.
But criminal activities may have an indirect impact. Crime adds billions of dollars to the GDP due to the need for locks and other security measures, increased police protection, property damage, and medical costs.
Activities of Police Force are included in GDP calculation. This include wages of police department, expenditure on patrol vehicles, ammunation.
3.)
Value added = Value of Goods sold - Value of goods consumed
Agricultural & Mining (Primary Sector) = 200 (sold to manufacturers) + 100 (Private sector for consumption) + 50 (sold to retailers) = 350
Manufactures (Secondary Sector) = [500] - [200] = 300
Retailers = [500] - [400+50] = 50
Total Output for Economy = 350 + 300 + 50 = 700