Question

One of the flaws of GDP is that it Select one: a. includes only transactions that take place in formal businesses. b. ignores transactions that do not take place in organized markets. c. includes measures of the underground economy. d. includes measures of changes of quality of life associated with producing output.

Answer 1

B.

Step-by-step explanation:

GDP is Gross domestic product and it the total monetary value of all the finished goods and the services produced in a country(within the border) in a financial year. It is calculated in three ways using expenditure, production or income. it is a key tool to guide policymakers , investors, businesses in strategic decision making.

But one of the flows of GDP is that it ignores transactions that do not take place in organized markets.