Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Attempts: 6·Limitations of GDP Although GDP is a reasonably good measure of a na

ID: 1144834 • Letter: A

Question

Attempts: 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 Keep the Highest: /2 Expenditures on federal highways The costs of overfishing and other overly intensive uses of resources The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government O The variety of goods available to consumers when a U.S. company purchases and imports electronic parts from China to use to produce MP3 players within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the in US GDP. Grade It Now Save & Continue Continue without saving

Explanation / Answer

The costs of overfishing and other overly intensive uses of overfishing because GDP does not measure such costs.They are measured in green accounting.

The value of babysitting services.....................because GDP includes only transactions reported to govt

The variety of goods.......... The reason is GDP measures value of goods and does not account for variety of goods

Increases the imports component of GDP while also decreasing net exports by same amount. Note imports are subtracted from exports to arrive at net exports which is part of GDP. Since imports increase the difference between exports and imports I. E net exports decrease.

From China causes fall in us GDP. The reason is GDP includes net export as a component and as net exports fall so does GDP