Which of the following best describes why GDP might underestimate the amount of production that takes place in Hamsterville?

Choose 1 answer:
(A) The distribution of the hamster zoo income is distributed very unequally in Hamsterville
(B) Much of what Hamsterville produces may involve non-marketed goods
(c) There is no investment occurring in Hamsterville, so investment is missing from GDP
(D) Much of the income that Hamsterville earns is from tourism, which isn't counted in GDP
(E) Farm production is never counted in GDP

Question

Which of the following best describes why GDP might underestimate the amount of production that takes place in Hamsterville?

Choose 1 answer:
(A) The distribution of the hamster zoo income is distributed very unequally in Hamsterville
(B) Much of what Hamsterville produces may involve non-marketed goods
(c) There is no investment occurring in Hamsterville, so investment is missing from GDP
(D) Much of the income that Hamsterville earns is from tourism, which isn't counted in GDP
(E) Farm production is never counted in GDP

Accepted Answer

***B*** ∻Key Concept∻ ⚹Non-marketed goods⚹ ∻Explanation∻ ⚹GDP may underestimate production if it doesn't include non-marketed goods, which are goods and services produced but not sold in the market.⚹◊How does the inclusion of non-marketed goods in GDP affect the accuracy of measuring the amount of production in Hamsterville?⍭ Generate me a similar question◊

Sia