Question

Which of the following activities are either not accounted for or are measured inaccurately in calculations of GDP for the United States?a. An MP3 player that is made in China, and sold in the United States b. The leisure time enjoyed by Americans c. Funds spent by city governments to renovate their buildings d. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government e. The loss of enjoyment people incur when scenic land is converted to commercial use

Answer 1

Answer:

b. The leisure time enjoyed by Americans

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

e. The loss of enjoyment people incur when scenic land is converted to commercial use

Explanation:

Many people have criticized GDP as a measure of well being, they believe GDP is not able to capture all the activities that should be represented in the measurement of well being in an economy.

They argue that GDP does not take into consideration leisure time and no adjustment is made for it in its computation.

Another argument is some services paid in cash not reported to the government is missing from the GDP computation, such as the value of babysitting services paid in cash.

The GDP doesn't account for loss of enjoyment people incur when scenic land is converted to commercial use.