Q
Which of the following is not a problem in comparing developed and developing countries GNP ?
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A
A. Gnp is understated for developed countries, since a number of items included in their national incomes are intermediate goods
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B
B. The economic contribution of a housewife is a peasant family may not be measured is gnp is poor country
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C
C. Gnp in understated for developing countries since many of their labor intensive good have no impact on exchange rate since they are not traded
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D
D. Gnp is overstated for for countries where the price of foreign exchange is less than market clearing price
Correct Answer:
A. A. Gnp is understated for developed countries, since a number of items included in their national incomes are intermediate goods
