Question

Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. 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 leisure time enjoyed by households
The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
Expenditures on federal highways
The loss of enjoyment people incur when scenic land is converted to commercial use
When a U.S. company purchases and imports automotive parts from Canada to use to build cars within the United States

Answer 1

Answer:

The correct answer is option : 1,2,4, and 5.

Explanation:

The leisure time enjoyed is not included in the GDP as it can not be expressed in monetary terms.

The value of babysitting will not be included as this transaction is not reported and thus not included in official accounts.

The loss of enjoyment people incur because of loss of scenic land will not be included as it can not be expressed in monetary terms.

The automotive parts are not final goods, they are intermediary goods and thus will not be included in GDP.