Which of the following is a shortcoming of GDP accounts?
A) They tend to overstate the trade balance as only exports are considered.
B) They do not take into account the unemployment level.
C) They include only production by the private sector and not government production.
D) They ignore the impact of pollution on the environment.

Question

Quizplus · Accepted Answer

GDP accounts do not factor in any costs associated with negative externalities, such as pollution. Therefore, it does not accurately reflect the well-being of individuals or the long-term sustainability of a nation.

Which of the Following Is a Shortcoming of GDP Accounts