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Economic Statistics Are Not Perfect

question 120

Essay

Economic statistics are not perfect. Explain at least one way in which each of the following statistics as currently calculated in the United States fails to completely or accurately measure the corresponding economic concept (in parentheses): a. real GDP per person (economic well-being);
b. CPI (cost of living);
c. unemployment rate (involuntary unemployment).


Definitions:

Common Stock

Equity ownership in a corporation, representing a share in its assets and earnings.

Dividends

Money disbursed to shareholders from a firm's profits as a profit share.

Salaries Expense

An account that records the total amount paid to employees for services performed during a specific period, excluding wages paid hourly.

Notes Payable

A formal written agreement to pay a specific amount of money on a certain date or upon demand to another party.

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