Because GDP Does Not Fully Account for Improvements in the Quality

question 204

Multiple Choice

Because GDP does not fully account for improvements in the quality of goods, the GDP calculation

• A) tends to overstate the true value of output in the United States.
• B) tends to understate the true value of output in the United States.
• C) provides an accurate value of output in the United States.
• D) measures the value correctly because price changes always capture the value of quality changes.

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Definitions:

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The condition of having a developing embryo or fetus within the body, as a result of the fertilization of an egg by a sperm.

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