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Market Prices Are Used to Measure Each Final Good Included

Question 18

Multiple Choice

Market prices are used to measure each final good included in the GDP. Therefore, the GDP ________ well-being if ________.


A) overstates; pollution results when the good is produced
B) understates; pollution results when the good is produced
C) overstates; rich people buy the good
D) understates; poor people buy the good

Correct Answer:

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