All of the Following,except One,lead to the Official GDP Figures

question 66

Multiple Choice

All of the following,except one,lead to the official GDP figures being understated.Which is the exception?

• A)Illegal activities of a productive nature.
• B)The work of a homemaker.
• C)A homeowner remodeling his basement.
• D)A lowering of the GST rate.
• E)The existence of an underground economy.

---

Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including material and labor costs.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets, which exclude inventory.

Quick Ratio

A liquidity ratio that measures a company's ability to pay its short-term obligations with its most liquid assets.

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term debts or liabilities due within the next 12 months.