Which of the Following Is a Shortcoming of GDP

question 98

Multiple Choice

Which of the following is a shortcoming of GDP?

• A) GDP measures nonmarket transactions.
• B) GDP includes an estimate of illegal transactions.
• C) GDP includes an estimate of the value of household services.
• D) GDP does not account for the distribution of consumption across a country's population.

---

Definitions:

Profit

The difference between what it costs to make and sell a product and what a customer pays for it.