Which of the Following Is a Shortcoming of GDP Accounts

question 40

Multiple Choice

Which of the following is a shortcoming of GDP accounts?

• A) They tend to overstate the trade balance as only exports are considered.
• B) They do not take into account the unemployment level.
• C) They include only production by the private sector and not government production.
• D) They ignore the impact of pollution on the environment.

---

Definitions:

Unemployment

The condition of being jobless among individuals who are actively seeking work.

Economic Indicators

These are statistical metrics used to measure the growth, health, and stability of an economy, including GDP, inflation rates, and unemployment figures.

Currency Risk

The risk of loss from fluctuations in foreign exchange rates when investing in foreign currencies or overseas assets.

Canadian Investors

Canadian investors refer to individuals or entities based in Canada that allocate capital in various financial vehicles such as stocks, bonds, and real estate, aiming for future financial returns.