Correct. The payment made to a public official under the table is not included in GDP calculations. See 12-7: Problems with GDP as a Measure of Economic Welfare

Question

Correct. The payment made to a public official under the table is not included in GDP calculations. See 12-7: Problems with GDP as a Measure of Economic Welfare​

Quizplus · Accepted Answer

The payment made to a public official under the table, which is part of the informal economy, is not recorded in the official GDP calculations. As a result, GDP comparisons between countries may understate the economic welfare of a country with a larger informal economy compared to one with a smaller informal economy, such as Country A compared to Country B in this case.

Correct the Payment Made to a Public Official Under the Table