Why are illegal activities not included in GDP calculations?

Illegal activities are not reported to the government, making it impossible to accurately measure their economic impact.

Describe one limitation of using GDP as the sole measure of a country's well-being.

GDP does not account for factors like pollution, health, stress, or community support, which all affect well-being.

8th Grade•50 minutes

I can analyze data to determine Brazil's economic strengths.

GDP, or gross domestic product, measures the aggregate goods and services produced in a country in a year.

GDP does not measure non-marketed goods, such as a spouse driving someone to the airport, or illegal activity, such as selling banned fireworks.

GDP does not capture things like pollution, health, stress, or a feeling of community or support, all of which affect human well-being.

This lesson includes 11 practice questions to reinforce learning.

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1. What is GDP an indicator of?

2. Explain why GDP per capita is used as an indicator of well-being.

3. Give an example of a non-marketed good or service and explain why it is not included in GDP.

...and 8 more questions

Limitations of GDP | Economic indicators and the business cycle | AP Macroeconomics | Khan Academy

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