Among the three most widely used measures of economic activity:
A) GDP understates economic activity to the greatest degree because the production of the underground economy is not included in the measure.
B) GNI is theoretically the most accurate, although not widely used because of the difficulty in quantifying the economic cost of depreciation.
C) GDP only counts production from within a country’s geographic boundaries, while GNI includes productivity of a country’s citizens regardless of where assets are located.
Your answer: A was incorrect. The correct answer was C) GDP only counts production from within a country’s geographic boundaries, while GNI includes productivity of a country’s citizens regardless of where assets are located.
There is typically very little difference between GDP and GNI, in spite of the fact that they are two distinct measures of a country’s productivity. (Study Session 4, LOS 20.a)
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So why isn’t A a correct answer? Schweser Book 1 Page 351: “GDP understates a country’s actual economic output because of presence of shadow or underground economies.” |
发表于 2013-4-17 16:55
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