Question

o generate estimates of gross domestic product​ (GDP), the Bureau of Economic Analysis must aggregate a variety of data​ sources, such as expenditure surveys. Which of the following are likely to be problems while estimating​ GDP? ​(Select all that​ apply). A. Measuring net exports B. Measuring consumption by households C. Measuring​ black-market production D. Measuring physical depreciation of capital

Answer 1

Answer:

Option C and D are the only correct option here.

Explanation:

The reason is that the calculation of physical depreciation of capital is very difficult and time consuming as well as costly process. So the measurement of physical depreciation of capital is correct option.

Furthermore, the measuring black market production can not be traced as the amount that is received for the product sold is in cash which is very difficult to trace such producers and sellers. So the measuring​ of black-market production is also difficult task in the economy.

Answer 2

Answer:

• C. Measuring​ black-market production
• D. Measuring physical depreciation of capital

Explanation:

The gross domestic product (GDP) includes the value of all the finished and legal products and services produced within a country during a certain period of time.

Black market products are not included in the GDP calculation but affect household expenditures.

Physical depreciation of capital reduces the net domestic product (NDP) and it is not something that can be easily estimated unless you are properly trained to do so. It is something very difficult to estimate using a survey.