Answer to Question #137211 in Macroeconomics for December

Question

56. Which one of the following statements about the shortcomings of real GDP is correct?
[1] It accounts for the distribution of national income
[2] It accounts for the negative effect resulting from production
[3] It is used to estimate the growth of the underground economy
[4] It does not account for labour of farmers in rural areas who produce for their own use

Answer 1

(4) It does not account for labour of farmers in rural areas who produce for their own use.