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Chapter 8: Q.c - For Critical Thinking (page 172)

Why might current intangible investments in recorded music by Katie Perry or Rihanna be harder to measure with greater precision today than long-past investments in the recorded music of, say, Elvis Presley in the 1960 s or Elton John in the 1970s? (Hint: Is it easier to project forward or to look back at past data?)

Short Answer

Expert verified

The worth of interest in current accounts will determine their worth throughout the future process of everything working out.

Step by step solution

01

introduction

Intangible assets allude to interest in elusive resources, for example, licenses, copyrights, and brand names are immaterial resources which shouldn't be visible or don't have an actual nature.

02

explanation

Intangible assets don't have a natural worth. They get their worth from lawful and moral privileges or from values they add to different merchandise. Recorded music is additionally an immaterial resource and interest in recorded music is in this manner, theoretical speculation which has no worth of its own. It is gotten from its legitimate right. Along these lines, it is not difficult to take a gander at past information to determine the worth of immaterial interest in recorded music done before. Music accounts in the past have inferred their worth over the long haul in light of the worth they add to different merchandise.

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Most popular questions from this chapter

Each year after a regular spring cleaning, Maria spruces up her home a little by retexturing and repainting the walls of one room in her house. In a given year, she spends \(25on magazines to get ideas about wall textures and paint shades, \)45on newly produced texturing materials and tools, \(35on new paintbrushes and other painting equipment, and \)175on newly produced paint. Normally, she preps the walls, a service that a professional walltexturing specialist would charge \(200to do, and applies two coats of paint, a service that a painter would charge \)350to do, on her own.

a. When she purchases her usual set of materials and does all the work on her home by herself in a given spring, how much does Maria's annual spring texturing and painting activity contribute to GDP?

b. Suppose that Maria hurt her back this year and is recovering from surgery. Her surgeon has instructed her not to do any texturing work, but he has given her the go-ahead to paint a room as long as she is cautious. Thus, she buys all the equipment required to both texture and paint a room. She hires someone else to do the texturing work but does the painting herself. How much would her spring painting activity add to GDP?

c. As a follow-up to part (b), suppose that as soon as Maria bends down to dip her brush into the paint, she realizes that painting will be too hard on her back after all. She decides to hire someone else to do all the work using the materials she has already purchased. In this case, how much will her spring painting activity contribute to GDP?

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