- Some outputs do not go through the market e.g. government output is not sold through the market.
- Illegal activities also do not go through the market system e.g prostitution, drugs, smuggling
- Subsistence output is not accounted for because it is not marketed.
- The services of some people e.g house wives and volunteers are not accounted for.
- We generally do not deduct negative outputs from GNP e.g. decline in safety, pollution etc.
- Double counting especially in goods having different stages of production. Enumerators add up the goods value at every stage of production instead of duly the value added.
What are the problems of GNP Measurement?
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