GDP understates the amount of economic production in the United States because it excludes
A)spending for the U.S.military.
B)transfer payments.
C)purchases of stocks and bonds.
D)work performed by people for their own benefit.

Question

Quizplus · Accepted Answer

GDP does not account for non-market activities such as work performed by individuals for their own benefit, like household chores or volunteer work, which can contribute to economic production.

GDP Understates the Amount of Economic Production in the United