PRC-3 · Chapter 13 · Question 43 of 50
Which of the following factors would severely impair the accuracy of official National Income accounting statistics?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A massive underground network of unrecorded illegal activities and cash businesses
Explanation
Illegal activities and the shadow economy operate purely in unrecorded cash, completely bypassing government statisticians and causing official GDP to be grossly understated.
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