Asked by Crystal Rivas on Jul 18, 2024
Verified
GDP takes into account
A) both psychic income and psychic cost.
B) neither psychic income nor psychic cost.
C) psychic income,but not psychic cost.
D) psychic cost,but not psychic income.
Psychic Income
The non-material satisfaction or pleasure derived from an activity or possession, not measured in terms of money.
Psychic Cost
The mental or emotional strain and stress that can arise from making decisions or engaging in a transaction, not accounted for in traditional financial costs.
- Ascertain the constituents that are incorporated and omitted when calculating Gross Domestic Product.
Verified Answer
KA
Kritsadanukorn AmbrosiaJul 23, 2024
Final Answer :
B
Explanation :
GDP only takes into account the monetary value of final goods and services produced within a country's borders in a given period of time. It does not consider psychic income (happiness or satisfaction) or psychic cost (emotional or mental stress or discomfort).
Learning Objectives
- Ascertain the constituents that are incorporated and omitted when calculating Gross Domestic Product.