10 Questions
Which of the following is NOT included in GDP calculation?
Goods and services produced within households
What term is commonly used to refer to unrecorded economic activities that involve both legal and illegal transactions?
Shadow economy
Why are illegal transactions like drugs smuggling not considered in the GDP calculation?
Because they are illegal activities
What type of labor involves people being paid for their work but the payments are not officially registered?
Off-the-books labor
Why is it important to understand the size of the shadow economy even though it is not considered in GDP?
To understand the full scope of economic activity
What does a larger size of the shadow economy imply for GDP per capita?
It decreases the reliability of GDP per capita as a measure of a country's actual income.
What is one method used to estimate the size of the shadow economy in a country?
Evaluation of electricity consumption
How does a higher growth rate in electricity consumption compared to GDP indicate the shadow economy's status?
The shadow economy is growing.
What does a sharp increase in the ratio between currency in circulation and 'official' GDP suggest?
An increase in the shadow economy
How reliable are estimations about changes in the black economy based on indirect indicators?
Vary depending on the indicator used
Test your knowledge on what is excluded from GDP measurement, such as household services like preparing meals and childcare. Understand why these exclusions are important for citizens' well-being despite being costly if purchased.
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