One Reason That Real GDP Tends to Overstate the Economic

question 87

Multiple Choice

One reason that real GDP tends to overstate the economic well-being of the country's residents is that it ignores

• A)the costs of increased leisure time.
• B)the market-based activity done from the home.
• C)the economic "bads" associated with production,such as pollution.
• D)non-market activities,such as teenaged-babysitting services.
• E)illegal activities,such as the drug trade.

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Definitions:

Rates Of Exchange

The value of one currency for the purpose of conversion to another.

Barter System

An exchange system in which goods or services are directly exchanged for other goods or services without the use of money.

Goods

Physical items that are produced for sale on the market, which can satisfy human wants or needs, such as food, clothes, and cars.

Trade

The exchange of goods, services, or both between two or more parties, either within the same country or across international borders.