The GDP tends to
A) overstate economic welfare because it does not include certain nonmarket activities such as the productive work of housewives.
B) understate economic welfare because it includes expenditures undertaken to offset or correct pollution.
C) understate economic welfare because it does not take into account increases in leisure.
D) overstate economic welfare because it does not reflect improvements in product quality.
Correct Answer:
Verified
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B)
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