GDP Is Defined as the Market Value of All Final

question 218

Essay

GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.

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Definitions:

Finance Charges

The cost of borrowing money, including interest and other fees.

Accounts Receivable Turnover

A financial ratio that measures how effectively a company collects cash from its credit sales by comparing net credit sales with the average accounts receivable.

Average Collection Period

The average amount of time it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Net Sales

The total revenue from sales of goods or services, less returns, allowances for damaged or missing goods, and discounts.