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. The quality of goods available to consumers ✔The loss of enjoyment people incur when scenic land is converted to commercial use Federal government paychecks to soldiers ✔ The import and sale of illegal drugs from South America When a U.S. company purchases and imports electronic parts from China to use to produce smartphones within the United States, this purchase increases the investment component of GDP while also increasing ▼ net exports by the same amount. Therefore, the purchase of electronic parts from China causes no overall change in US GDP.

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. The quality of goods available to consumers ✔The loss of enjoyment people incur when scenic land is converted to commercial use Federal government paychecks to soldiers ✔ The import and sale of illegal drugs from South America When a U.S. company purchases and imports electronic parts from China to use to produce smartphones within the United States, this purchase increases the investment component of GDP while also increasing ▼ net exports by the same amount. Therefore, the purchase of electronic parts from China causes no overall change in US GDP.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 7
Answer it correctly please. I ll rate accordingly with multiple votes. Typed answer and give explanation. My last attempt. Do it correctly.
2. Which of the following is NOT included in the calculation of GDP? a) Investment spending b) Government spending
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5. 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. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government The costs of air and water pollution Federal government paychecks to soldiers The variety 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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