ConceptConceptDocsDocuments

AP Macroeconomics 2.2: GDP Limitations

Explain why GDP excludes nonmarket activity and imperfectly measures economic performance, including transactions and quality-of-life factors outside market output.

Syllabus
Effective Fall 2025
Course
AP Macroeconomics

Covered syllabus points

MEA-1.B—Define the limitations of GDP

2.2 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

All question bank results loaded