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 value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government Federal government paychecks to soldiers The variety of goods available to consumers The costs of overfishing and other overly intensive uses of resources

Answer 1

Answer:

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

• The variety of goods available to consumers.

• The costs of overfishing and other overly intensive uses of resources

Explanation:

The expenditure method for the calculation of the gross domestic product is when every final goods and services that are bought in the country for a particular period of time are all added together. The expenditure method is made up of the expenditure of the consumer, expenditure of the government spending, investments and the net exports.

For the income approach of calculating GDP, it means that the expenditures for the economy and the income for that particular economy must be equal.

The options that are not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States include the value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government, the variety of goods available to consumers and the costs of overfishing and other overly intensive uses of resources.

It should be noted that Federal government paychecks to soldiers is accounted for in the GDP of a country as this is an expenses for the Federal government.