The "statistical discrepancy" that the NIPA includes in the data is to account for the following, except
A) equalizing GDP totals produced by the expenditures approach and the income approach.
B) errors due to people misrepresenting their incomes on their tax returns.
C) diﬃculty in accurately estimating depreciation.
D) household production, or "do-it-yourself" activities of households.

Question

Quizplus · Accepted Answer

The "statistical discrepancy" in the National Income and Product Accounts (NIPA) is included to account for differences between the GDP as calculated by the income approach and the expenditures approach. It does not account for household production or "do-it-yourself" activities, as these are not easily quantifiable in economic terms and are generally not included in GDP calculations.

The "Statistical Discrepancy" That the NIPA Includes in the Data