Ethics Is Defined as Principles of Right and Wrong

question 59

True/False

Ethics is defined as principles of right and wrong.

Understand the concept of value added in the context of GDP.

Distinguish between expenditures included and excluded in the consumption component of GDP.

Understand the role of government spending, net exports, and investments in GDP calculation.

Recognize how GDP reflects the economic performance of a country.

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Definitions:

Private Markets

Markets where transactions occur directly between parties without significant regulatory oversight, often avoiding public exchanges.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by anyone and one person’s consumption doesn’t reduce availability to others.

Free-riders

Individuals who benefit from resources, goods, or services without paying for them, often seen in public goods and collective risk scenarios.

Private Markets

are markets where transactions are conducted directly between two parties without being publicly traded on an exchange.