Which of the Following Actions Will Lead to GDP Underestimating

question 88

Multiple Choice

Which of the following actions will lead to GDP underestimating the true output of the economy?

• A)Gretchen begins an accounting and bookkeeping service in her home, accepting cash as payment, which is not reported to tax authorities.
• B)David accepts a position as an economist with the Bank of Canada.
• C)James begins drawing Canada Pension Plan benefits upon his retirement.
• D)Mary begins a catering business.

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Definitions:

Olfaction

The sense of smell, an important sensory system allowing for the detection and identification of odors in the environment.

Audition

The sense of hearing; the perception of sound.

Vestibular Sense

A sensory system responsible for providing our brain with information about motion, head position, and spatial orientation; it also helps with balance and eye movements.

Kinesthesis

The sense of movement and body position, often referred to as proprioception.