Which of the following activities is excluded from GDP, causing GDP to understate a nation's production?
A) the services of health care workers
B) the services of military personnel
C) the construction of new buildings
D) goods and services produced in the underground economy

Question

Quizplus · Accepted Answer

Goods and services produced in the underground economy, also known as the black market or informal economy, are not recorded in official GDP statistics. This can cause GDP to understate a nation's production because it does not include economic activity that is not reported to the government. The other options listed (health care workers, military personnel, and construction) are all included in GDP as they are legal economic activities that are reported to the government.

Which of the Following Activities Is Excluded from GDP, Causing