Since non- market exchanges are excluded from measures of GDP, the GDP measure tends to

Question

Quizplus · Accepted Answer

Non-market exchanges, such as household production or volunteer work, are excluded from GDP calculations, which can lead to an underestimation of the total production of an economy. This is because these non-market exchanges are not reflected in market transactions, which GDP heavily relies on. Therefore, choice C is the best answer.

Since Non- Market Exchanges Are Excluded from Measures of GDP