Genovia produced 10 million tonnes of wheat in a particular year. However, 1 million tonnes got infested with pests and had to be thrown away. How will this affect the calculation of the gross domestic product of the country for that year?
What will be an ideal response?
The quantity of wheat that had to be thrown away will not affect the calculation of GDP since depreciation is not included in the calculation of GDP.
Economics
You might also like to view...
Basis may change if
A. a new ethanol plants is built locally. B. a large capacity train terminal is built by CGB. C. a drought resulted in a short crop. D. All of the above.
Economics
If the real interest rate in the United States decreases, foreign investors will ________ their demand for U.S. dollars because they desire to ________ fewer U.S. financial assets
A) increase; buy B) increase; sell C) decrease; buy D) decrease; sell
Economics