GDP Tends to Underestimate the Productive Activity in the Economy

question 180

Multiple Choice

GDP tends to underestimate the productive activity in the economy because it excludes:

• A)spending by the government on military goods.
• B)spending by businesses to reduce the level of pollution.
• C)the work done by construction companies to remodel homes.
• D)the personal labour time homeowners spend on home repairs.

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Definitions:

Ross Stores

A popular American chain of off-price department stores specializing in offering discounted brand name apparel, footwear, and home accessories.

Pricing Practice

The methods and strategies employed by companies to set, adjust, and present the prices of their products or services to consumers.

Maintained Markup

Maintained Markup refers to the difference between the retail price of an item and its cost, excluding reductions for markdowns or promotional sales.

Precious Moments

A brand known for its collectible porcelain figurines, gifts, and ornaments that often commemorates sweet, sentimental moments.