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 excludes nonmarket production, such as black market activities.
D. GDP considers product and factor markets but not services.
Answer: C
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Under President Eisenhower the problem of inflation.
A. got a lot worse. B. got a little worse. C. got a little better. D. got a lot better.
The only firms that do not have market power are
A) firms in perfectly competitive markets. B) firms in industries with low barriers to entry. C) firms that do not advertise their products. D) firms that sell identical products.
Over time, the consumer basket of a base year becomes increasingly more representative of the things consumers buy
Indicate whether the statement is true or false
The inflation rate in January of 2009 as measured by the CPI was zero. If inflation were to remain at zero for a long period, what would be the effect on velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to interest rates.