Which of the following is NOT a reason that real GDP is a poor measure of a nation's economic welfare?
A) Real GDP omits measures of political freedom.
B) Real GDP does not take into account the value of people's leisure time.
C) Real GDP does not include the underground economy.
D) Real GDP overvalues household production.

Question

Quizplus · Accepted Answer

Real GDP does not overvalue household production; in fact, it does not fully account for household production at all. Household production is typically undervalued or not included in real GDP calculations, which is why D is not a correct reason for real GDP being a poor measure of economic welfare.

Which of the Following Is NOT a Reason That Real