GNI Per Capita Only Measures Outputs,so It Does Not Take

question 8

True/False

GNI per capita only measures outputs,so it does not take into account externalities like environmental damage (e.g.,resource depletion,air pollution).

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Definitions:

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, presented in a structured way.

NPV

Net Present Value (NPV) is a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Cost of Capital

Cost of capital represents the return rate an entity must pay to its stakeholders in order to justify the use of capital in the business.

Initial Outflow

The initial cash expenditure required to undertake an investment or project.