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:

Total Revenue

The total amount of income generated by the sales of goods or services associated with a company's primary operations.

Average Revenue

The amount of income generated per unit of sale, calculated by dividing total revenue by the number of units sold.

Total Revenue

The entire amount of income generated by the sale of goods or services, before any expenses are deducted.

Variable Costs

Costs that vary in direct proportion to the volume of output or production in a company.