GDP Tends to Underestimate the Productive Activity in the Economy

question 180

Multiple Choice

GDP tends to underestimate the productive activity in the economy because it excludes:

• A)spending by the government on military goods.
• B)spending by businesses to reduce the level of pollution.
• C)the work done by construction companies to remodel homes.
• D)the personal labour time homeowners spend on home repairs.

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Definitions:

Distance Formula

An equation used to determine the distance between two points in a coordinate plane, derived from the Pythagorean theorem.

Collinear

Refers to points lying on the same straight line.

Perimeter

The total distance around the edge of a two-dimensional shape.

Vertices

The corners or points where two or more edges meet in a geometric shape.