A shortcoming of national income accounting is that it ignores:
A)the depreciation of manufactured capital.
B)spending by poor households who are receiving government transfer payments.
C)spending on intermediate goods.
D)the depletion of natural resources.
E)U.S.products that are sold overseas.

Question

Quizplus · Accepted Answer

National income accounting typically does not account for the depletion of natural resources, which can lead to an overestimation of a nation's true economic well-being by not considering the environmental costs.

A Shortcoming of National Income Accounting Is That It Ignores