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AP Macroeconomics 2.2 Limitations of Gdp Questions

Explain what GDP measures and why excluding nonmarket production, unpaid work, and second-hand transactions limits economic performance comparisons.

Syllabus
Effective Fall 2022
Course
AP Macroeconomics

Exam points

  • identify nonmarket production and second-hand sales omitted from current GDP and explain the measurement limit

Covered syllabus points

MEA-1.B—Define the limitations of GDP

Question 1

[Maximum number: 1]

GDP does not fully measure a nation's economic performance because it fails to account for which of the following?

A

Exports of goods and services

B

Government spending

C

Business spending on physical capital

D

Consumer spending on durable goods

E

Nonmarket transactions

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