Which of the Following Is a Problem When Comparing GDPs

question 51

Multiple Choice

Which of the following is a problem when comparing GDPs per capita between nations?

• A) GDP per capita only measures income distribution.
• B) Fluctuations in exchange rates affect differences in GDP per capita.
• C) GDP per capita is subject to greater measurement errors for IACs compared to LDCs.
• D) GDP per capita is likely overstated in LDCs due to families producing goods and services outside of the pricing system.

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