In making comparisons of personal income among countries,care must be exercised because in poor countries much of what is produced does not pass through markets and thus does not get counted in the nation's income.

Question

Quizplus · Accepted Answer

This statement is true. In poor countries, a significant portion of economic activity may occur in the informal sector or subsistence agriculture, meaning that it is not captured in official statistics of national income. As a result, comparisons of personal income across countries based solely on official statistics may be misleading.

In Making Comparisons of Personal Income Among Countries,care Must Be