Question

6. Limitations of GDP 

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. 

Expenditures on federal highways 

The leisure time enjoyed by households 

The value produced when you wash your own car at home 

The costs of air and water pollution 

When a U.S. company purchases and imports electronic parts from China to use to produce MP3 players within the United States, this purchase increases the _______  component of GDP while also _______  net exports by the same amount. Therefore, the purchase of electronic parts from China causes _______  in US GDP.

Answer 1

Second, third and Fourth cases are not accurately measured by GDP

So pls select them

When a U.S. company purchases and imports electronic parts from China to produce MP3 players within the United States, this purchase increases the investment component of GDP while also decreasing net exports by the same amount. Therefore, the purchase of automotive parts from China causes no overall change in US GDP