Which of the following statements is NOT true of GDP?
A) GDP excludes nonmarket production.
B) There are no significant weaknesses in using GDP as a measure of the nation's economic performance.
C) GDP is the value of final goods and services produced in the economy.
D) GDP is not a measure of a nation's overall welfare.

Question

Quizplus · Accepted Answer

While GDP is a widely-used measure of economic performance, it does have significant weaknesses, such as not accounting for income inequality, environmental costs, and nonmonetary factors that contribute to well-being. Therefore, statement B is not true.

Which of the Following Statements Is NOT True of GDP