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GDP Tends To

Question 22

Multiple Choice

GDP tends to:


A) overstate economic well-being, because it does not include certain nonmarket activities such as the productive work of homemakers
B) understate economic well-being, because it includes expenditures to reduce or eliminate pollution
C) understate economic well-being, because it does not take into account increases in leisure
D) overstate economic well-being, because it does not reflect improvements in product quality
E) fairly reflect economic well-being at all times

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