GDP Excludes Most Items That Are Produced and Sold Illegally

question 91

Multiple Choice

GDP excludes most items that are produced and sold illegally and most items that are produced and consumed at home because

• A)the quality of these items is not high enough to contribute value to GDP.
• B)measuring them is so difficult.
• C)the government wants to discourage the production and consumption of these items.
• D)these items are not reported on income tax forms.

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Definitions:

Nonverbal Communication

The transfer of information through body language, facial expressions, gestures, and other physical signs.

Verbal Communication

The process of expressing ideas and conveying messages through spoken words to another individual or group.

Assumptions

Beliefs or statements taken to be true without requiring empirical evidence.

Reality

The state of things as they actually exist, as opposed to how they may appear or may be thought to be.