List and Describe Four of the Six Categories of Economic

question 74

Essay

List and describe four of the six categories of economic exchanges that are omitted from GDP calculations.Explain why these transactions are not included in GDP and give an example of each to help support your answer.

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Definitions:

Average Rate of Return

This refers to the percentage of average annual profit compared to the initial investment cost, commonly used to evaluate the profitability of an investment.

Average Rate of Return

A financial ratio that calculates the return, or profit, of an investment over a certain period as a percentage of the initial cost of the investment.

Economic Conditions

The state of a country's economy at a given time, influenced by factors such as GDP, unemployment rates, and inflation.

Liquidity

A company’s ability to convert assets into cash.