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Economics
Tutor: None Selected Time limit: 1 Day

  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?
Aug 19th, 2015

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The GDP is underestimating  national production and total income 


Limitations of the GDP in measuring total output and national welfare include overestimating other trading partner's GDP andwith resultant underestimation of the GDP. It underestimates informal markets and overestimates negative externalities 


Products excluded from GDP computation include goods sold from previous years, intermediate products and illegal items 

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Aug 19th, 2015

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