GDP understates the value of output produced by an economy because it
A) includes environmental degradation caused by increased output production.
B) excludes value added from the underground economy, such as tips taken "under the table."
C) includes transactions that do not take place in organized markets, such as home-cooked meals.
D) excludes the value of the wages and fringe benefits of government employees.
Correct Answer:
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Q271: If real GDP decreased during a year,
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Q277: The base year of an index is
A)
Q278: Per capita gross national income (GNI) decreases
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