Which of the Following Activities Is Excluded from GDP, Causing

question 116

Multiple Choice

Which of the following activities is excluded from GDP, causing GDP to understate a nation's production?

• A) the services of health care workers
• B) the services of military personnel
• C) the construction of new buildings
• D) goods and services produced in the underground economy

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Definitions:

Resource Driver

A factor that influences the consumption of resources in the production of goods or services, used for more accurate allocation of costs in activity-based costing.

Cost Estimate

An approximation of the expected cost to complete a project, task, or transaction, based on available information.

Cost Driver

A factor that causes a change in the cost of an activity or production process, such as machine hours or labor hours.

Resource Driver

A factor that causes a change in the consumption of resources in the production of a product or service.