Which of the Following Is a Limitation of Real GDP

question 39

Multiple Choice

Which of the following is a limitation of real GDP as a measure of economic well-being?

• A) Little is revealed about the distribution or composition of output.
• B) Output is overstated because intermediate production is included.
• C) It fails to account for the consumption of a country's productive capacity.
• D) It measures only a country's expenditures, not its income.
• E) It fails to account for expenditures by the public sector.

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Definitions:

Coercion

The act of compelling someone to act in a certain way by use of force or threats, often rendering any resulting agreement voidable.

Scienter

The knowledge or intent to deceive, manipulate, or defraud, used as a criterion to establish liability in fraud and securities litigation.

Annulled

A legal declaration that invalidates a marriage, contract, or another legal agreement, making it as though it never existed.

Intimidation

Intimidation is the act of making others fear that they will suffer harm or adverse consequences, often used to influence behavior or decisions against their will.