GDP tends to underestimate the productive actlivity in the om: Public transfer p
ID: 1150527 • Letter: G
Question
GDP tends to underestimate the productive actlivity in the om: Public transfer payments to households Intermediate goods . Gordon is a person who sells narcotics on the street This type of Wk g . Would be considered double counting in calculating GDP . Causes GDP to be overstated Is estimated and included in GDP figures . Is excluded from GDP figures 52. The service a homeowner performs when she mows her yard is n A. Multiple counting would be involved B. This is a noninvestment transaction C. This is a nonproduction activity D. This is a nonmarket transaction inclubed in CG 5 A. Includes the cost of health insurance gross domestic product is not a good measure of the standard of living in a nation beoc B. Excludes payments for pollution control equipment C. Does not account for the cost of police protection D. Does not account for the size of the population certain nonmarket activities such as the produc C. understate economic welfare because it does not take into account increases in leisure. D. understate economic welfare because it includes expenditures undertaken to offiset or correct p 54. The GDP tends to: work of housewives B. overstate economic welfare because it does A. overstate economic welfare because it does not not reflect improvements in product quality 55. The growth of GDP may understate changes in the economy's econo A. environment deteriorates because of pollution. B. amount of leisure decreases. C. distribution of income becomes increasingly unequal. D. quality of products and services improves.Explanation / Answer
A underground economy as it is not reported
B is excluded from gdp. Such illegal activities are not counted because they are illegal
C only counting final goods. Then intermediate goods are excluded
D GDP would be overstated as value to intermediaries will also be taken into calculations
Can answer only 4 parts according to chegg policy
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