Describe three types of perceptual errors and provide an example of each. Solution hi, please find the correct answer as follows; The three types of perceptual errors are: 1) Halo effect: which is when our general impression of a person is based on like one prominent characteristic, which dominates our perception of other characteristics of that person Example: a person is sometimes late so the manager forms a negative impression of the person and from then on sees everything the employee does negatively. 2) Primacy effect: our opinion of people is based on the first information we form about them Example: we evaluate the person based on our first impression of them, so if we had a good first impression you wuold view that person in a favourable light 3) Recency effect: when the most recent information dominates our perception of others Example: when a manager evaluates an employee\'s performance, the most recent performance dominates so if the last thing the employee did was sign a big contract with a supplier than the manger will have a very positive impression of the employee.

1. describe two alternatives that address concerns that GDP does not adequately account for
environmental damage. What are the major advantages and disadvantages of each?
describe two alternatives that address concerns that GDP does not adequately account for
environmental damage. What are the major advantages and disadvantages of each?
describe two alternatives that address concerns that GDP does not adequately account for
environmental damage. What are the major advantages and disadvantages of each?
Solution
GDP is purely an economic indicator. It ignores the environmental and social impacts of
development.
The two alternatives that can address these concerns are described as follows:
1. Index of Sustainable Economic Welfare (ISEW) and Genuine Progress Indicator (GPI) :
This is a modification to GDP. Unit is in currency i.e $. it has 26 indicators in 4 domains to
asses. In this index, consumption expenditures are weighted by income distribution, with
volunteer and household work added to it and environmental and social costs subtracted from it.
Advantages: it takes care of income inequality, hidden contributors like household work and
environmental damage costs are included.
Disadvantages: It shows reduced developments than what actual GDP shows. So, actual
development in monetary terms might be more than what this index propose.
2. Genuine Savings :
This is an income accounts modification. Unit is in currency i.e $. it has 5 indicators in 3
domains to asses. In this index, level of saving are calculated after depreciation of produced
capital. It includes investments in human capital. The depletion of minerals, energy, and forests
and damages from local and global air pollutants are accounted for in this index.
Advantages: It modifies the savings to make it more real, and social and environmental costs are
included in this index.
Disadvantages: same disadvantage of making the development of a country look more less than
what GDP proposes.