Was doing some econ questions from QBank, and the questions look alien to me. Though they are really simple ones (if you remember the context), I was just not able to recall if I have read anything like this before. I hope such blackout doesn’t happen on the test day.
When considering the effect of depreciation on the measurement of a countrys economic activity, most economists believe it:
A) must be included in the calculation in order to provide the most accurate assessment of the countrys economic position.
B) may or may not be included in the calculation as long the calculation is clearly identified as a gross or net number.
C) is difficult to accurately quantify and is generally excluded from the calculation.
D) should only be included if it represents an amount greater than 5% of total production.
Gross Domestic Product (GDP) typically understates a countrys productivity because it does not fully account for:
A) depreciation / depletion of assets.
B) any productive assets physically located in other countries.
C) the countrys shadow economy.
D) transfer payments
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