The GDP underestimates the value of the nation's output.

Question

Quizplus · Accepted Answer

This statement is true. The GDP only takes into account the market value of final goods and services produced within a country's borders. It does not consider non-market activities such as household production, volunteer work, or the underground economy. Additionally, it does not account for social or environmental costs and benefits associated with economic activity. Therefore, the GDP is an incomplete measure of the nation's overall output and well-being.

The GDP Underestimates the Value of the Nation's Output