In some countries, the official GNI per capita measured at PPP data does not reflect the actual the total annual income because:
A) it doesn't consider differences in the cost of living.
B) it gives a static picture of development.
C) it fails to include income earned from other countries in the form of dividends.
D) large amounts of economic activity may be in the form of barter agreements.

Question

Quizplus · Accepted Answer

In some countries the "official" figures do not tell the entire story because large amounts of economic activity may be in the form of unrecorded cash transactions, or barter agreements. Estimates suggest that in India it may be around 50 percent of GDP, which implies that the Indian economy is half as big again as the officially reported figures.

In Some Countries, the Official GNI Per Capita Measured at PPP