GDP tends to
A) overstate economic welfare because it does not include certain nonmarket activities such as the productive work of housewives.
B) understate economic welfare because it includes expenditures undertaken to offset or correct pollution.
C) understate economic welfare because it does not take into account increases in leisure.
D) overstate economic welfare because it does not reflect improvements in product quality.
Correct Answer:
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Q155: Gross output (GO) for an economy in
Q156: GDP excludes
A) the market value of unpaid
Q157: All expenditures on new construction are included
Q158: In determining GDP by the expenditures method,
Q159: Exports are subtracted from imports in calculating
Q161: Real GDP accounts for changes in product
Q162: The following are examples of final goods
Q163: Which of the following is a primary
Q164: An example of final goods in national
Q165: Welfare payments to low-income families are included
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