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Give reason explain how should the following be treated in estimating Gross Domestic Product at market price 1. fees to a mechanic paid by firm. 2.interest paid by individual on a car loan taken from a bank. 3. expenditure on purchasing a car for use of by a firm?
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Give reason explain how should the following be treated in estimating ...
Estimating Gross Domestic Product at Market Price
Fees to a mechanic paid by a firm
One of the ways to treat the fees paid by a firm to a mechanic in estimating Gross Domestic Product at market price is by including it in the final price of the product or service offered by the firm. This is because the fees paid to the mechanic are considered as intermediate goods or services used by the firm in the production process. Therefore, the fees paid to the mechanic can be added to the value of the final product or service produced by the firm, and this will increase the Gross Domestic Product at market price.
Interest paid by an individual on a car loan taken from a bank
The interest paid by an individual on a car loan taken from a bank should not be included in the estimation of Gross Domestic Product at market price. This is because the interest paid on a car loan is not a part of the value of goods and services produced in the economy. The interest paid on a car loan is considered a transfer payment made from an individual to a bank, and it does not add to the Gross Domestic Product at market price. Therefore, it should be excluded from the estimation of Gross Domestic Product at market price.
Expenditure on purchasing a car for use by a firm
The expenditure on purchasing a car for use by a firm should be included in the estimation of Gross Domestic Product at market price. This is because the purchase of the car is considered as a final product or service produced in the economy. The car is considered as a capital good, and it is used by the firm in the production process to produce goods and services. Therefore, the expenditure on purchasing the car should be added to the Gross Domestic Product at market price.
Fees to a mechanic paid by a firm
One of the ways to treat the fees paid by a firm to a mechanic in estimating Gross Domestic Product at market price is by including it in the final price of the product or service offered by the firm. This is because the fees paid to the mechanic are considered as intermediate goods or services used by the firm in the production process. Therefore, the fees paid to the mechanic can be added to the value of the final product or service produced by the firm, and this will increase the Gross Domestic Product at market price.
Interest paid by an individual on a car loan taken from a bank
The interest paid by an individual on a car loan taken from a bank should not be included in the estimation of Gross Domestic Product at market price. This is because the interest paid on a car loan is not a part of the value of goods and services produced in the economy. The interest paid on a car loan is considered a transfer payment made from an individual to a bank, and it does not add to the Gross Domestic Product at market price. Therefore, it should be excluded from the estimation of Gross Domestic Product at market price.
Expenditure on purchasing a car for use by a firm
The expenditure on purchasing a car for use by a firm should be included in the estimation of Gross Domestic Product at market price. This is because the purchase of the car is considered as a final product or service produced in the economy. The car is considered as a capital good, and it is used by the firm in the production process to produce goods and services. Therefore, the expenditure on purchasing the car should be added to the Gross Domestic Product at market price.
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Give reason explain how should the following be treated in estimating ...
1. Fees to a mechanic paid by a firm = it is intermediate expenditure of a firm. Since the inclusion of intermediate consumption expenditure leads to double counting, it will not be included in estimating GDP at market price
2. Interest paid by individual on a car loan taken from a bank = It is not included because the loan is taken to meet consumption expenditure and therefore interest paid on such a loan is not a factor payment.
3. Expenditure on purchasing a card for use of by a firm = It is included because it is an investment expenditure, a final expenditure.
2. Interest paid by individual on a car loan taken from a bank = It is not included because the loan is taken to meet consumption expenditure and therefore interest paid on such a loan is not a factor payment.
3. Expenditure on purchasing a card for use of by a firm = It is included because it is an investment expenditure, a final expenditure.
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Give reason explain how should the following be treated in estimating Gross Domestic Product at market price 1. fees to a mechanic paid by firm. 2.interest paid by individual on a car loan taken from a bank. 3. expenditure on purchasing a car for use of by a firm?
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Give reason explain how should the following be treated in estimating Gross Domestic Product at market price 1. fees to a mechanic paid by firm. 2.interest paid by individual on a car loan taken from a bank. 3. expenditure on purchasing a car for use of by a firm? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Give reason explain how should the following be treated in estimating Gross Domestic Product at market price 1. fees to a mechanic paid by firm. 2.interest paid by individual on a car loan taken from a bank. 3. expenditure on purchasing a car for use of by a firm? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Give reason explain how should the following be treated in estimating Gross Domestic Product at market price 1. fees to a mechanic paid by firm. 2.interest paid by individual on a car loan taken from a bank. 3. expenditure on purchasing a car for use of by a firm?.
Give reason explain how should the following be treated in estimating Gross Domestic Product at market price 1. fees to a mechanic paid by firm. 2.interest paid by individual on a car loan taken from a bank. 3. expenditure on purchasing a car for use of by a firm? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Give reason explain how should the following be treated in estimating Gross Domestic Product at market price 1. fees to a mechanic paid by firm. 2.interest paid by individual on a car loan taken from a bank. 3. expenditure on purchasing a car for use of by a firm? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Give reason explain how should the following be treated in estimating Gross Domestic Product at market price 1. fees to a mechanic paid by firm. 2.interest paid by individual on a car loan taken from a bank. 3. expenditure on purchasing a car for use of by a firm?.
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