0
1) Non-market activities such goods and services people do themselves such as mowing the neighbor's lawn.
2)The Underground economy; a large amount of production and income is never recorded or reported to the government transactions such as drugs and weapons on the black market.
3)Negative externalities; Unintended economic sides. Example, a company pays extra money to reduce pollution, the value of reduced pollution is not added to the GDP.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What are the shortcomings in calculation of GDP?
GDP has several shortcomings when measuring the economy's performance. It does not take into account nonmarket transactions. The labor of a homeowner repairing his own house is not included in GDP, so GDP understates the total output. Also, GDP fails to account for improved product quality. Personal computers have seen drastic improvements in speed and storage capabilities since the 1990's, but their improvements are not counted in GDP. The underground economy is, for obvious reasons, not included in GDP calculations. Gamblers, smugglers, and drug dealers comprise a substantial amount of a nation's economic activity, but their "work" is disregarded.
Why is it desirable for a country to have a large GDP?
A large GDP indicates a higher revenue and increased production. Such GDP will boost or improve government expenditure and perhaps reduce taxation. Also in a well organized society or state, a large GDP can enhance economic activities resulting to growth.
What gets included and excluded when calculating GDP?
total income and total expenditure are included when calculating GDP.
If intermediate goods are included in GDP what would happen to the GDP?
the GDP would be overstated
What is included in GDP and what is excluded from GDP?
GDP is the value of all the goods and services produced in the country in one year. Money earned outside of the country is not included.
What economic activities are included in GDP?
1) Non-market activities such goods and services people do themselves such as mowing the neighbor's lawn. 2)The Underground economy; a large amount of production and income is never recorded or reported to the government transactions such as drugs and weapons on the black market. 3)Negative externalities; Unintended economic sides. Example, a company pays extra money to reduce pollution, the value of reduced pollution is not added to the GDP.
What region included Massachusetts and had shipbuilding and fishing as a major economic activities?
hawiee
What are the shortcomings in calculation of GDP?
GDP has several shortcomings when measuring the economy's performance. It does not take into account nonmarket transactions. The labor of a homeowner repairing his own house is not included in GDP, so GDP understates the total output. Also, GDP fails to account for improved product quality. Personal computers have seen drastic improvements in speed and storage capabilities since the 1990's, but their improvements are not counted in GDP. The underground economy is, for obvious reasons, not included in GDP calculations. Gamblers, smugglers, and drug dealers comprise a substantial amount of a nation's economic activity, but their "work" is disregarded.
Why is it desirable for a country to have a large GDP?
A large GDP indicates a higher revenue and increased production. Such GDP will boost or improve government expenditure and perhaps reduce taxation. Also in a well organized society or state, a large GDP can enhance economic activities resulting to growth.
What gets included and excluded when calculating GDP?
total income and total expenditure are included when calculating GDP.
What are some of Argentina's economic activities?
The economy of Argentina is Latin America's third-largest, with a high quality of life and GDP per capita.
If intermediate goods are included in GDP what would happen to the GDP?
the GDP would be overstated
What is included in GDP and what is excluded from GDP?
GDP is the value of all the goods and services produced in the country in one year. Money earned outside of the country is not included.
What are Newfoundland's major economic activities?
Services account for more than half the GDP. The three main services are financial, health care, and public administration.
What is economic and non-economic activity?
Essentially the difference between economic and non economic activity is that economic activity are activities in the economy that contribute to the Gross Domestic Product [GDP] of the Nation. I.E if you provide/produce a good or service in exchange for money. example: you grow apples and sell them at the market- this is economic activity. Non economic activity is just the opposite. Activity in the economy that does not affect GDP. My understanding is that it is essentially unpaid work. Like if you clean your house or mow your lawn and do not get paid for your time/efforts.
Is traditional economic activities are called early economic activities?
Yes, the traditional economic activities are the same as the ealy economic activities.
Advantages and disadvantage of using the GDP as a measure of productivity and economic health?
The advantages of using GDP as a measure of productivity and economic health is that GDP is universal and can be used to measure an economy's growth or decline. The disadvantage of using GDP as a measure of productivity and economic health is that it does not effectively measure the quality of products.
