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Q. |
Which of the following is not a problem in comparing developed and developing countries’ GNP? |
A. | GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods |
B. | The economic contribution of a housewife in a peasant family may not be measured in GNP in poor country. |
C. | GNP is understated for developing countries since many of their labor-intensive good have no impact on exchange rate since they are not trad |
Answer» A. GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods |
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