Question

Which of the following statements is false?

• A. GDP measures the value of all the goods and services produced in the economy.
• B. GDP stands for gross domestic product.
• C. GDP excludes intermediate goods and services.
• D. GDP equals wages plus trading profits.

Answer 1

Answer:

A. GDP measures the value of all the goods and services produced in the economy.

GDP covers only final goods and services, and excludes intermediate goods and services.