The Measurement of GDP Handles Underground Production by

question 58

Multiple Choice

The measurement of GDP handles underground production by

• A)including the amount produced in this sector of the economy in exactly the same way that all other production is included.
• B)omitting it because underground production is unreported to the government by the people involved.
• C)adding it at fixed prices that change only infrequently.
• D)adding an estimate of it because it is difficult to precisely measure underground production.
• E)omitting it because,being illegal,it has no effect on the nation's total production.

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Definitions:

Cost Basis

The original value of an asset for tax purposes, adjusted for stock splits, dividends, and return of capital distributions.

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Musical Work

A creative piece of music which has been composed, written, or recorded.

Engine

A machine designed to convert one form of energy into mechanical energy.