All of the following are examples of how GDP underestimates a nation's production of goods and services except pollution costs. vacation travel. household production. stock purchases. student aid payments.

Question

Hayley Beard

Business

12 April, 09:26

All of the following are examples of how GDP underestimates a nation's production of goods and services except pollution costs. vacation travel. household production. stock purchases. student aid payments.

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Vanessa Figueroa · Answer 1

Student aid payments.

Explanation:

Gross Domestic Products (GDP) can be defined as the aggregate market value of the goods and services produced in a specific period of time in a particular country. The rate of growth by Gross Domestic Products (GDP) of a country is an important indicator that shows or represent its economic performance in a specific period of time, usually a year.

Additionally, the Gross Domestic Products (GDP) of a particular country can be calculated by using production levels, income and expenditures.

Also, all revenue associated with foreign trades such as export are included as Gross Domestic Products (GDP) except for imports.

The following are examples of how Gross Domestic Products (GDP) underestimates a nation's production of goods and services, pollution costs, vacation travel, household production, and stock purchases.

Student aid payments has no effect on the GDP of an economy as it isn't adding any value to the economy of a country.