Which of the following is a shortcoming of GDP? a. GDP excludes nonmarket transactions. b. GDP excludes business investment spending. c. GDP excludes changes in inventories. d. GDP includes an estimate of illegal transactions.

The correct answer is A. GDP excludes nonmarket transactions.

Explanation:

The GDP is an indicator that is considered deficient in the measurement of the quality of life of the people, since the aggregate of the production of a country prevails during a year. However, there are other types of transactions that are not considered in the calculation, due to how difficult it would be to detect them, such as work carried out at home and undeclared operations to evade taxes.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.