Measures of GDP may understate the economic well- being of people in developing countries if those countries tend to

Question

Quizplus · Accepted Answer

Developing countries often have a large portion of their economic activity in non-market activities, such as subsistence agriculture or informal labor, which may not be captured in GDP calculations. As a result, measures of GDP may understate the economic well-being of people in these countries.

Measures of GDP May Understate the Economic Well- Being of People