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A New Tannery Opens in Town

Question 3

Multiple Choice

A new tannery opens in town. Although the tannery brings many new jobs, it is also dumping waste into the river. What shortcoming of GDP measurement does this reflect?


A) Nonmarket activities are excluded.
B) GDP ignores income distribution.
C) The shadow economy is missing.
D) Environmental degradation is not counted.

Correct Answer:

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