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:

Penalty Kick

A penalty kick in economics might refer metaphorically to an opportunity to score or gain significantly with little opposition, though it's primarily a sports term.

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A quantitative measure expressing the likelihood of achieving a specified outcome or reaching a goal.

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The likelihood that a system or component will fail to perform its intended function within a specified period.

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A table that displays the potential outcomes or payoffs resulting from different strategies chosen by players in a strategic game or decision-making scenario.