A Shortcoming of Real GDP Is

question 137

Multiple Choice

A shortcoming of real GDP is:

• A) it does not include the underground economy.
• B) it includes non-market goods.
• C) it does not measure changes in employment.
• D) it does not include the value obtained through purchases of stocks and bonds.
• E) it does not account for changes in the prices of goods and services.

---

Definitions:

Product Availability

The extent to which a product can be purchased by consumers, determined by factors such as stock levels and distribution efficiency.

Inventory Holding Costs

The expenses associated with storing unsold goods, including warehousing, insurance, and deterioration.

Product Fill Rate

The percentage of customer or sales orders fulfilled from stock at hand.

Order Fill Rate

A measure of supply chain efficiency that indicates the percentage of customer orders that are fulfilled without backorders or stockouts.