Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. O Federal government paychecks to soldiers O The loss of enjoyment people incur when scenic land is converted to commercial use O The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government O The quality of goods available to consumers When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of wood from Brazil causes in US GDP.
Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. O Federal government paychecks to soldiers O The loss of enjoyment people incur when scenic land is converted to commercial use O The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government O The quality of goods available to consumers When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of wood from Brazil causes in US GDP.
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 1.2P
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Transcribed Image Text:6. Limitations of GDP
Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation.
Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating
GDP for the United States? Check all that apply.
O Federal government paychecks to soldiers
O The loss of enjoyment people incur when scenic land is converted to commercial use
O The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
O The quality of goods available to consumers
When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the
component of GDP while also
net exports by the same amount. Therefore, the purchase of wood
from Brazil causes
in US GDP.
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