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Q1 suppose police become more efficient and we hire fewer

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Q1. Suppose police become more efficient and we hire fewer police officers. what will happen to GDP?

Q2. Assume a product improves in quality from one year to the next year and its price rises to reflect this improvement. what happens to GDP Deflator and Real GDP?

Q3. Do increase in unwanted inventories on firms shelves count as inventory invested in GDP Account?

Q4. Is buying an air condition an act of consumption or investment in the GDP accounts? what about purchase of a house?

Q5. What happens to GDP account if a Pakistani firm decides to build a plant in Dubai rather than the Pakistan?

Q6. How would an increase in a sales tax affect GDP?

Q7. Is domestic investment the same as investment done in Pakistan?

Q8. Why are goods and services counted in GDP at market prices. are they any disadvantage in using market price to measure productions?

Q9. Explain why intermediate goods and services are not included directly in GDP. are there any circumstances under which they would be included directly?

Q10. What is the difference in the national income accounts if a firm purchases a car for an executive or the firm pays the executive an additional income to purchase a car?

Reference no: EM13372978

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