Why Do GDP Figures Tend to Understate the Quantity of Goods

question 107

Multiple Choice

Why do GDP figures tend to understate the quantity of goods and services available?  

• A) because most household production is ignored 
• B) because many items are counted twice or more in intermediate stages of production 
• C) because more women are entering the labour force 
• D) because firms often add less to inventories than they planned to

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Definitions:

Withdrawn

A psychological state or behavior characterized by a reluctance to engage with others or participate in social activities.

Cognitive Development

The progression of thinking, problem solving, and learning abilities throughout a person’s lifespan, often emphasizing stages and transitions.

Antisocial Behavior

Activities that harm or lack consideration for the well-being of others, often violating social norms and rules.

Imagining Feelings

The process of mentally simulating emotions that one may not currently be experiencing, often used in empathy and perspective-taking.