Which of the following is a significant weakness of GDP as a measure of the nation's economic performance?
A) GDP excludes the secondhand good market because it is impossible to obtain an estimate of the amount sold.
B) GDP excludes the value of the buying and selling of securities.
C) GDP considers product and factor markets but not services.
D) GDP excludes nonmarket production, such as black market activities.

Question

Quizplus · Accepted Answer

GDP only measures production that takes place within the formal economy and excludes nonmarket production. This exclusion of nonmarket production, including black market activities, can lead to an inaccurate measurement of the actual economic activity of a nation.

Which of the Following Is a Significant Weakness of GDP