Which of the Following Statements Is NOT True of GDP

question 139

Multiple Choice

Which of the following statements is NOT true of GDP?

• A) GDP excludes nonmarket production.
• B) There are no significant weaknesses in using GDP as a measure of the nation's economic performance.
• C) GDP is the value of final goods and services produced in the economy.
• D) GDP is not a measure of a nation's overall welfare.

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Definitions:

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Ceteris Paribus

A Latin term used in economics to describe the analysis of a condition under the assumption that all other variables remain unchanged.

Scarcity

The basic economic issue arises from unlimited human desires facing limited resources on the planet.

Free Lunch

A term that implies you cannot get something for nothing, often used in the context that every choice has a cost.