Answer:
4. Underestimate the amount of production in the economy
Explanation:
In the estimation of Gross domestic products (GDP), most non - market transactions are excluded like babysitting, house cleaning, lawn mowing, car washing by children and so on. Thus, the exclusion of these non market transactions reduces the amount of calculated level of production in a given country invariably underestimating the amount of production in that given economy. If the non market transactions are included, the current level of every country GDP would increase as it would now account for those non market production.
Answer:
underestimate the amount of production in the economy ( 4 )
Explanation:
The GDP ( gross domestic product ) is the monetary measure of the economic growth of an economy i.e the monetary value of all final goods and service produced in an economy within a specific/given time
GDP excludes most non-market transactions when been computed by the financial body charged with the responsibility. therefore most non-market production like babysitting and domestic cleaning and other forms of non-market service been rendered in the economy are not computed.
therefore GDP underestimates the amount of production in the economy.
