ECO 1102 Lecture Notes - Lecture 6: Environmental Degradation, Externality, Gdp Deflator
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Eco 1102 - lecture 6 - chapter 7 part 3 - chapter 8. In some ways, it miscalculates it, as a result, actual economic welfare is higher than the official numbers indicate. These are the following factors that limitate gdp measures: The underground economy : buying and selling of goods and services that is concealed from the government to avoid taxes or regulations or because the goods and services are illegal. For example, banned drugs, restricted weapons, endangered animals and plants, etc. activity is not reported. It does not reflect time allocated to leisure. Home production : - goods and services that are both produced and consumed within one household and are not exchanged in a market and not included in gdp. For example, if you grow vegetables in your garden and sell them at a farmer"s market, that"s part of the gdp, but if you eat them yourself, its not.
