Large amounts of nonmarket production and illegal activities mean that a lot of Latin American countries are actually richer than their GDP suggests.

Question

Quizplus · Accepted Answer

Nonmarket production, such as household work or services provided within a community without monetary exchange, is not included in GDP calculations. Additionally, many Latin American countries have high levels of informal and illegal economic activity that also goes unreported in official GDP statistics. These factors can result in the actual economic production and wealth of a country being higher than its GDP suggests.

Large Amounts of Nonmarket Production and Illegal Activities Mean That