GDP tends to overstate economic well-being because it takes into account
A)improvements in product quality over time.
B)expenditures undertaken to correct pollution.
C)illegal activities of individuals and businesses.
D)nonmarket activities, such as the productive work of homemakers.

Question

Quizplus · Accepted Answer

Expenditures undertaken to correct pollution are not included in GDP, so they cannot overstate economic well-being.

GDP Tends to Overstate Economic Well-Being Because It Takes into Account