Question

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.a. Federal government paychecks to soldiers b. The costs of air and water pollution c. The quality of goods available to consumers d. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government

Answer 1

The value of baby sitting services when the baby sitter is paid in cash and the transaction isn't reported to the government

Explanation:

Some of the values and the transactions are not added to the GDP and there are many off the book activities which are not included in the GDP and one such activity is baby sitting

In the US many people get paid off for baby sitting and the money that they are paid are not added to the economy and it does not account the enjoyment of the people and the loses that incur during the loss of enjoyment of the people

Answer 2

Answer:

The correct answer is D.. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government.

Explanation:

The main exclusion corresponds to everything produced in the so-called informal economy. This includes the trade of illegal goods (such as drugs and anything that circulates on the black market) that, it is believed, could amount to almost a tenth of the economy of rich countries.

The GDP also does not include the constituents of the products in addition to the products themselves. For example, the engine of a car will not be counted separately from the vehicle of which it is a part. Another issue is whether the engine is sold separately.