Which of the Following Will Lead to GDP Underestimating Our

question 101

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.
• E)None of the above.

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Definitions:

Legal Relationship

A connection between two or more parties recognized and regulated by law, involving rights, duties, and obligations.

Contract

refers to a legally enforceable agreement between two or more parties that creates obligations to do or not do specific things.

Intention

A person's plan or purpose to carry out an exact action, often considered in legal contexts to determine the nature of an agreement or responsibility.

Unconditional Acceptance

An agreement to the terms of an offer without any modifications or conditions.