Homework Help Question & Answers

Gross Domestic Product (GDP) only measures the value of marketed goods and services for a country...

Gross Domestic Product (GDP) only measures the value of marketed goods and services for a country during a given period of time.

  1. Is the GDP measure underestimating or overestimating national production and total income in the economy? Why?
  2. What are the limitations of the GDP in measuring total output and national welfare? What products (services) are excluded from the GDP computation?
0 0
Next > < Previous
ReportAnswer #1


1.

The GDP measure is underestimating the national production and total income in the economy. this is because the GDP is not taking into account quality improvements, value of household produced goods, black market goods etc.

2.

One major limitation of GDP is that it does not take into account the quality factor. If the same amount of goods are being produced in 2 countries, with one country producing a much better quality good with warranty and guarantee services to the consumers, the GDP would still be counted as same for both.

Products excluded from GDP computation: Non-market transactions like household work, household produced goods and services etc. are not taken into account

Know the answer?
Add Answer of:
Gross Domestic Product (GDP) only measures the value of marketed goods and services for a country...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Which of the following is NOT true about gross domestic product (GDP)?​ a. ​It includes only...

    Which of the following is NOT true about gross domestic product (GDP)?​ a. ​It includes only final goods and services. b. The values are measured in current dollars c. Intermediate goods and services are excluded to prevent double counting.​ d. It includes the value of transfer payments.​ The gross domestic product (GDP) excludes:​ a. the value of intermediate goods produced.​ b. the spending by government on new roads and bridges.​ c. household spending on goods and services.​ d. ​the increase...

  • The gross domestic product (GDP) or gross domestic income (GDI), a basic measure of an economy's...

    The gross domestic product (GDP) or gross domestic income (GDI), a basic measure of an economy's economic performance, is the market value of all final goods and services made within the borders of a nation in a year. GDP is widely used by economists to gauge the health of an economy, as its variations are relatively quickly identified. However, its value as an indicator of the standard of living is limited. What is a limitation of using GDP to measure...

  • Gross Domestic Product

    Gross domestic product measures two things at once:A. The total spending of everyone in the economy and the total saving of everyone in the economy.B. the total income of everyone in the economy and the total expenditure on the economy's output of goods and services.

  • 10) Gross domestic product is A) the market value of all the final goods and services...

    10) Gross domestic product is A) the market value of all the final goods and services produced in a country during a given time period. B) the market value of all goods and services produced in a country during a given time period. C) the final value of all goods produced in a country in a given time period. D) the market value of all the intermediate goods and services produced in a country during a given time period. E)...

  • Gross domestic product is: the finished value of all marketable goods and services produced in a country over a year....

    Gross domestic product is: the finished value of all marketable goods and services produced in a country over a year. o the market value of all intermediate goods and services produced in a year. the market value of all final goods and services produced by domestically owned factors of production in a year. o the market value of all final goods and services produced in a country over a year.

  • The gross domestic product (GDP) or gross domestic income (GDI), a basic measure of an economy's...

    The gross domestic product (GDP) or gross domestic income (GDI), a basic measure of an economy's economic performance, is the market value of all final goods and services made within the borders of a nation in a year. briefly describe why it’s so important.

  • Is the value of intermediate goods and services produced during the year included in Gross Domestic...

    Is the value of intermediate goods and services produced during the year included in Gross Domestic Product (GDP)? For example, is aluminum used to produce a new mountain bike included in GDP? (Note that this question does not ask whether aluminum is directly counted in GDP but rather whether the production is included in GDP) O A. No. There is no value added in the production of aluminum. Therefore, production is not included in the value-added method of measuring GDP...

  • Gross domestic product is - final market value of all goods and services by domestic producers...

    Gross domestic product is - final market value of all goods and services by domestic producers both here and abroad - total market value of all final goods and services produced by resources in the U.S -TOTAL MARKET VALUE OF ALL GOODS AND SERVICES produced by resources in the U.S.

  • Gross domestic production is equal to the total expenditure on the economy's output of goods and...

    Gross domestic production is equal to the total expenditure on the economy's output of goods and services, but not the total income of everyone in the economy. the total income of everyone in the economy, but not the total expenditure on the economy's output of goods and services. neither the total income of everyone in the economy, nor the total expenditure on the economy's output of goods and services. the total income of everyone in the economy, and the total...

  • 2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of...

    2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Included Excluded Scenario Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 5, 2020. It sells...

Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
Share Your Knowledge

Post an Article
Post an Answer
Post a Question with Answer

Self-promotion: Authors have the chance of a link back to their own personal blogs or social media profile pages.