Which of the Following Is a Reason for the Discrepancy

question 38

Multiple Choice

Which of the following is a reason for the discrepancy between GDP and GDI?

• A) GDP is measured from a sample of household figures while GDI is measured from tax returns filed by firms and households.
• B) The sample size used to estimate these figures is very large leading to more statistical errors.
• C) GDP is estimated using estimated sales provided by business while GDI is based on actual expenditures incurred by households.
• D) GDP is measured from sales and inventory figures collected from a sample of business while GDI is collected from a sample of household figures.

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Definitions:

Bankruptcy

A legal process for individuals or businesses that are unable to repay their outstanding debts.

Consumer Reporting Agency

is an organization that compiles and provides consumer credit information to entities like creditors, employers, and landlords, impacting decisions on lending, employment, and housing.

Obsolete Information

Information that is no longer relevant or useful due to changes in technology, knowledge, or societal norms.

Truth In Lending Act

A U.S. law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.