Which Is Not a Shortcoming of GDP Accounting

question 188

Multiple Choice

Which is not a shortcoming of GDP accounting?

• A)It ignores the underground economy.
• B)It excludes household production.
• C)It excludes the value of leisure time.
• D)It ignores changes in population.
• E)It has no mechanism for adjusting the figures for inflation.

---

Definitions:

Condition Precedent

A specific event or action that must occur before a contract becomes binding or a party is required to perform their contractual obligations.

Duty

A legal or moral obligation to do or refrain from doing something.

Contractual Obligations

Duties that a party is bound to perform under a contract.

Operation of Law

Operation of law refers to a legal change that occurs automatically due to the application of existing law, without the need for any direct action by the parties involved.