Answer to Question #228493 in Economics of Enterprise for Fahim

Question

5. (a) While computing Gross Domestic Product (GDP) how the following cases should be handled? 6 (i) Arong has produced 1000 leather bags among which only 500 bags could be sold. They stored rest of the bags for future sale. How the value of these unsold bags will be added to GDP? (ii) “Take-out” is a name of a burger shop. On an average the price of their burger is 250 taka. While adding the value of a burger to the GDP as food product, should 250 taka be added as the value of each burger? How is the final value of a burger added to GDP? (iii) Mr. Rafiq owns a duplex house and lives there. He bought it in 2010. How the value of his housing asset will be added to the GDP in 2020? (b) In comparing of the living standard of people among different countries, why GDP is not a proper estimate? Logically write about this problem.

Answer 1

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