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. The loss of enjoyment people incur when scenic land is converted to commercial use The variety of goods available to consumers Funds spent by city governments to renovate their buildings The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government

Answer 1

Answer:

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

The variety of goods available to consumers Funds spent by city governments to renovate their buildings

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

Explanation:

GDP does not account for off-the-books activities, such as babysitting, which add value to the economy but are not reported to the government. It also doesn't consider the enjoyment households experience as a result of the variety of goods available to consumers. Finally, GDP doesn't take into account the loss of enjoyment people incur when scenic land is converted to commercial use. All of these, though important in measuring the true quality of life within a country, would be far too difficult to measure accurately.