Which of the following is not a problem or shortcoming of GDP?
A)Goods produced in one period that are sold in the following period fail to get counted in any period.
B)It tends to understate the growth of economic welfare because it does not fully and accurately account for improvements in the quality of products.
C)GDP is not an accurate measure of welfare because it makes no adjustment for harmful side effects (such as pollution)or destructive acts of nature.
D)GDP understates output because it fails to include nonmarket production such as that which takes place in the household or in illegal markets.

Question

Quizplus · Accepted Answer

Goods produced in one period that are sold in the following period are counted in GDP as inventory investment, so they are not omitted from GDP calculations.

Which of the Following Is Not a Problem or Shortcoming