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.

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Definitions:

Variable Overhead Efficiency Variance

A calculation that shows the cost impact of the difference between the actual and expected efficiency in using variable overhead resources in production.

Relevant Information

Data that can influence a decision-making process because it is pertinent and has a bearing on the situation.

Actual Results

The real outcomes achieved by an organization, which can be measured and compared against its goals or forecasts.

Planned Activities

Predefined actions or strategies set by an organization in pursuit of its objectives.