Which of the Following Is a Significant Weakness of GDP

question 236

Multiple Choice

Which of the following is a significant weakness of GDP as a measure of the nation's economic performance?

• A) GDP excludes the secondhand good market because it is impossible to obtain an estimate of the amount sold.
• B) GDP excludes the value of the buying and selling of securities.
• C) GDP considers product and factor markets but not services.
• D) GDP excludes nonmarket production, such as black market activities.

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Definitions:

Racial Taxonomies

Classifications or categorizations of human diversity based on perceived or socially constructed notions of race.

Biological Reality

The actual, factual existence and characteristics of biological organisms, structures, and processes as they are, not as they are perceived or interpreted.

Cultural Context

The set of social, historical, and environmental conditions and influences that shape behaviors, practices, perceptions, and values of individuals or groups.

Construct Validity

The degree to which a test measures what it claims, or purports, to be measuring.