Problems Of Measurement Flashcards
What is an underground economy and how does this cause problems with measurement?
This refers to things that are traded illegally. These are things that will not contribute to GDP because the government is unaware of these transactions taking place.
What is double counting ans how does this affect measuring GDP?
Certain things bought may be used to make another commodity so the initial good will be counted twice.
What are home produce goods and how do they affect measuring GDP?
This refers to unpaid work, like domestic work, favours or volunteering. It leads to miscounting GDP as one persons work will not be counted.
How does real and monetary GDP affect problems with measurement?
Should you count GDP including inflation?
How do goods made in the U.K. By foreign countries affect counting GDP?
These goods count toward our GDP even tough they are external to our economy.
How does a large volume of data lead to problems with measuring GDP?
The amount of figures may lead to mistakes being made.
How will pollution and other externalities lead to problems with GDP?
Certain factors not linked to GDP may affect things GDP is trying to measure. E.g pollution and life expectancy.
