The GDP Figures Fail to Count Labor Services and Other

question 78

Multiple Choice

The GDP figures fail to count labor services and other household production. Once this omission is taken into account,

• A) the income differences between the high and low income countries are small.
• B) the differences in living standards between the high and low income countries are small.
• C) the income differences between the high and low income countries are still huge.
• D) the life expectancy in the high and low income countries is approximately the same.

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Definitions:

Investment

Placing capital into assets or projects with the aim of generating growth, returns, or appreciation over time.

Shares

Units of ownership interest in a corporation or financial asset, representing a proportion of the company's capital.

Factory

A building or set of buildings where products are manufactured or assembled primarily by machine.

Disposable Income

The total amount of money available for an individual or household to spend or save after income taxes have been deducted.