Although GDP is a reasonably good measure of a nation\'s output, it does not nec

Question

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 expenditure methods of calculating GDP for the United States? Check all that apply. The value produced by doing your own laundry The value of leisure time Federal government paychecks to soldiers The costs of overfishing and other overly intensive uses of resources The parts of an American car that are produced in Canada

Explanation / Answer

Correct option:

The value of doing own laundry

The costs of overfishing and other overly intensive uses of resources

Reason:

The only limitation of GDP is that it does not include value of work done for self or any sort of personal work as well as any cost/benefit to the society because of any work carried out. Leisure will not be counted because it is not leading to any productive activity.

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