Question

Why is GDP an imperfect measurement of total production in the​ economy?

Answer 1

Answer:

The correct answer is option D.

Explanation:

The GDP of an economy measures the value of final goods and services produced in the economy in a given period. It, however, does not include the value of the household of production of goods and services. This is because the household production does not involve transactions or exchange.

Apart from that, it also does not include the production in the underground. Since it is not reported to the government the value of underground production is not exactly known and thus cannot be included.  

So the GDP does not correctly present the value of total production in the economy.