Which of the Following Is a Main Limitation of GDP

question 410

Multiple Choice

Which of the following is a main limitation of GDP?

• A) GDP figures are grossly inaccurate due to sampling errors.
• B) The real definition of what is and is not included in GDP is unclear.
• C) GDP is not a good measure of a nation's overall welfare.
• D) GDP includes some products, which by their very nature are bad products, such as military weapons.

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Definitions:

S&P 500 Index Futures

Financial contracts to buy or sell the Standard & Poor's 500 Index at a future date, used for hedging or speculative purposes.

Overpriced

A situation where a security or asset is trading at a price higher than its intrinsic value or fair value.

Sell

To transfer ownership of a security or other asset in exchange for money or value.

Stocks

Shares of ownership in a company that entitle the shareholder to a proportion of the company's profits and assets.