Podcast
Questions and Answers
Which of the following is NOT included in GDP calculation?
Which of the following is NOT included in GDP calculation?
- Goods and services produced within households (correct)
- Undeclared labor transactions
- Illegal economic activities
- Services that would be counted if bought on the market
What term is commonly used to refer to unrecorded economic activities that involve both legal and illegal transactions?
What term is commonly used to refer to unrecorded economic activities that involve both legal and illegal transactions?
- Transparent economy
- Visible economy
- Official economy
- Shadow economy (correct)
Why are illegal transactions like drugs smuggling not considered in the GDP calculation?
Why are illegal transactions like drugs smuggling not considered in the GDP calculation?
- Because they are not relevant for the economy
- Because they have no market value
- Because they are difficult to measure
- Because they are illegal activities (correct)
What type of labor involves people being paid for their work but the payments are not officially registered?
What type of labor involves people being paid for their work but the payments are not officially registered?
Why is it important to understand the size of the shadow economy even though it is not considered in GDP?
Why is it important to understand the size of the shadow economy even though it is not considered in GDP?
What does a larger size of the shadow economy imply for GDP per capita?
What does a larger size of the shadow economy imply for GDP per capita?
What is one method used to estimate the size of the shadow economy in a country?
What is one method used to estimate the size of the shadow economy in a country?
How does a higher growth rate in electricity consumption compared to GDP indicate the shadow economy's status?
How does a higher growth rate in electricity consumption compared to GDP indicate the shadow economy's status?
What does a sharp increase in the ratio between currency in circulation and 'official' GDP suggest?
What does a sharp increase in the ratio between currency in circulation and 'official' GDP suggest?
How reliable are estimations about changes in the black economy based on indirect indicators?
How reliable are estimations about changes in the black economy based on indirect indicators?
