Question

GDP is an imperfect measure of economic​ well-being because it fails to measure what types of​ production? A. Household production and the underground economy. B. Business investment and foreign production. C. Household production and foreign production. D. Foreign production and the government sector.

Answer 1

The correct answer is option A.

Step-by-step explanation:

GDP is not a perfect method to measure economic growth and well being. This is because it does not include a lot of things. The production in the underground economy is not included. It also does not include household production of goods and services.

Apart from that value of leisure, crimes, pollution, etc. are also not included. All this may lead to overestimation or underestimation of economic well being.