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

A

B

D

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.  

Items not included in the calculation off GDP includes:  

1.services not rendered to oneself

2.Activities not reported to the government  

3.illegal activities

4.sale or purchase of used products

5.sale or purchase of intermediate products

6. quality of goods purchased

7. externalities

Amount paid to soldiers is included in GDP as part of government spending

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