Asked by Emmanuel Munashe Matimba on May 20, 2024

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Which statement is true?

A) GDP tells us what we produce.
B) GDP estimates the value of household and illegal production.
C) Per capita real GDP is found by dividing population by real GDP.
D) International comparisons of per capita real GDP may be made with less caution than comparisons over time within a given country.
E) None of the statements are true.

Per Capita

A statistical measure that divides an aggregate by the number of individuals in the population, commonly used to express economic indicators.

Household Production

The creation of goods and services within a home for the use by its members, which replaces or supplements the purchase of products and services from the market.

Illegal Production

Refers to the manufacturing or production of goods and services that violate laws or regulations, often involving prohibited substances or activities.

  • Understand the constraints and criticisms of Gross Domestic Product as an indicator of economic prosperity.
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SY
Shubhi YadavMay 22, 2024
Final Answer :
E
Explanation :
GDP primarily measures the total value of all goods and services produced over a specific time period within a country's borders, but it does not account for household and illegal production. Per capita real GDP is calculated by dividing real GDP by the population, not the other way around. International comparisons of per capita real GDP require caution due to differences in currency values, living costs, and data collection methods, making such comparisons more complex than temporal comparisons within a single country.