Which of the following statements is TRUE about GDP?
A) GDP includes all known goods and services in the underground economy.
B) GDP includes a negative adjustment for damage caused by pollution.
C) GDP does not account for the distribution of income in a country.
D) GDP includes a positive adjustment for the value of leisure and well-being.

Question

Quizplus · Accepted Answer

GDP measures the total value of all goods and services produced over a specific time period within a country's borders. It does not account for the distribution of income among residents of that country, nor does it adjust for the underground economy, pollution, or non-market activities such as leisure and well-being.

Which of the Following Statements Is TRUE About GDP