Which of the Following Will Lead to GDP Underestimating Our

question 108

Multiple Choice

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

• A)​Mary begins a catering business.
• B)​James begins drawing Social Security benefits upon his retirement.
• C)​David accepts a position as a software specialist at Microsoft.
• D)​Gretchen begins an accounting and bookkeeping service in her home, accepting cash as payment, which is not reported to tax authorities.

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Definitions:

Conflict of Interest

A conflict of interest occurs when an individual's personal interests potentially interfere with their professional responsibilities, leading to biased decisions.

Employee

An employee is a person who is hired to provide services to a company on a regular basis in exchange for compensation.

Personal Gain

Benefiting or profiting oneself, often at the expense of others or through unethical means.