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14 April, 11:32

Which of the following is a shortcoming of GDP? a. GDP excludes nonmarket transactions. b. GDP excludes business investment spending. c. GDP excludes changes in inventories. d. GDP includes an estimate of illegal transactions.

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  1. 14 April, 11:54
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    The correct answer is A. GDP excludes nonmarket transactions.

    Explanation:

    The GDP is an indicator that is considered deficient in the measurement of the quality of life of the people, since the aggregate of the production of a country prevails during a year. However, there are other types of transactions that are not considered in the calculation, due to how difficult it would be to detect them, such as work carried out at home and undeclared operations to evade taxes.
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