Question

Which of the following is a shortcoming of GDP accounts? Group of answer choices They do not take into account the unemployment level. They tend to overstate the trade balance as only exports are considered. They include only production by the private sector and not government production. They ignore the impact of pollution on the environment.

Answer 1

Answer: They ignore the impact of pollution on the environment.

Explanation: Ignoring the impact of pollution on the environment is one of the shortcoming of GDP accounts. GDP accounts do not take into consideration the effects of the methods of getting the money. Some Production methods might be harmful to the environment but when talking about GDP accounts, only monetary value is considered.