ise id-1037063 T8new atter QUESTION 6 Which of the following is not a problem in

Question

ise id-1037063 T8new atter QUESTION 6 Which of the following is not a problem in comparing developed and developing countries' GNP? GNP is understated for developed countries since a number of items included in their national incomes are intermediate goods O The economic contribution of a housewife in a peasant family may not be measured in GNP in the poor country GNP is understated for developing countries since many of their labour-intensive good have no impact on the exchange rate since they are not traded O GNP is overstated for countries where the price of foreign exchange is less than market clearing price

Explanation / Answer

Answer 6. Option 1 is correct. This is because while computing the National Income, intermediate goods are not taken into account even in poor countries. So, question of intermediate goods being taken into account does not arise.

Hence this is not a problem.

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