Question
1. GDP as a measure of economic welfare fails to account for certain factors, including nonmarket transactions, the underground economy, leisure, externalities, and the quality
1. GDP as a measure of economic welfare fails to account for certain factors, including nonmarket transactions, the underground economy, leisure, externalities, and the quality of the goods purchased. Considering this, which of the following are included in GDP calculations?
a. cleaning services performed by Molly Maid Corporation
b. lawn-mowing services performed by a neighborhood child
c. drugs sold illegally on a local street corner
d. prescription drugs manufactured in the US and sold at a local pharmacy
e. a rug woven by hand in Turkey
f. air pollution that diminishes the quality of air you breathe
g. toxic-waste cleanup performed by a local company
h. car parts manufactured in the US for a car assembled in Mexico
i. a purchase of 1,000 shares of IBM stock
j. monthly social security payment received by a retiree
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