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 variety of goods available to consumers The costs of overfishing and other overly intensive uses of resources 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 When a U.S. company purchases and imports electronic parts from China to use to produce smartphones within the United States, this purchase increases the net exports by the same amount. Therefore, the component of GDP while also purchase of electronic parts from China causes in US 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. The variety of goods available to consumers The costs of overfishing and other overly intensive uses of resources 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 When a U.S. company purchases and imports electronic parts from China to use to produce smartphones within the United States, this purchase increases the net exports by the same amount. Therefore, the component of GDP while also purchase of electronic parts from China causes in US GDP.
Chapter11: Gross Domestic Product
Section: Chapter Questions
Problem 9SQP
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When a U.S. company purchases and imports electronic parts from China to use to produce smartphones within the United States, this purchase increases the (consumption, government purchases, investment) component of GDP while also (increasing, decreasing) net exports by the same amount. Therefore, the purchase of electronic parts from China causes (an overall decrease, an overall increase, no overall change) in US GDP.
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