GDP Figures Tend to Understate the Quantity of Goods and Services

question 26

Multiple Choice

GDP figures tend to understate the quantity of goods and services available because:

• A) exports are subtracted from GDP but imports are not added back in.
• B) many items are counted twice or more in intermediate stages of production.
• C) more women are entering the labour force.
• D) the changes in quality of products are not included in GDP.

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Definitions:

Oxidation

A chemical reaction in which a substance loses electrons, often associated with the gain of oxygen or loss of hydrogen, crucial in energy production and metabolic processes.

Electrons

Subatomic particles with a negative charge that circle around an atom's nucleus.

Dehydration

The loss or removal of water from something, commonly referring to the state in which an organism's body loses more fluids than it takes in.

Allosteric Regulation

Control of an enzyme’s activity by a regulatory molecule that binds outside the active site.