Which of the Following Is a Shortcoming of GDP

question 116

Multiple Choice

Which of the following is a shortcoming of GDP?

• A) GDP excludes changes in inventories.
• B) GDP includes an estimate of illegal transactions.
• C) GDP excludes nonmarket transactions.
• D) GDP excludes business investment spending.

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Definitions:

Office Supplies

Consumable items and minor equipment used in an office setting, such as paper, pens, and staplers.

Petty Cash

Petty cash is a small amount of cash on hand used for covering minor, incidental expenses within a business.

Journal Entry

A record of a business transaction in the accounting journal that shows the accounts and amounts debited and credited.

Merchandise Inventory

Goods a business has acquired to sell to customers but has not yet sold.