Which of the Following Is NOT a Reason That Real

question 19

Multiple Choice

Which of the following is NOT a reason that real GDP is a poor measure of a nation's economic welfare?

• A) Real GDP omits measures of political freedom.
• B) Real GDP does not take into account the value of people's leisure time.
• C) Real GDP does not include the underground economy.
• D) Real GDP overvalues household production.

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Definitions:

Interest Revenue

Income earned by an entity through investments in interest-bearing financial instruments or accounts.

Debt Investments

Financial assets purchased with the expectation that the loan made to the issuer (such as bonds) will be paid back with interest.

Available-For-Sale Security

A financial asset that is purchased with the intent of selling before its maturity date but not classified as actively traded or held to maturity.

Realized Gain

The profit made from the sale of an asset, which becomes evident upon completion of the transaction.