Not including illegal gambling income in GDP is what kind of measurement limitation?
Answer and explanation
Correct answer: Lack of legal and reliable records
GDP estimation requires information about the value of production and income generated in an economy. Illegal gambling is hidden, lacks dependable official records, and may not be reported by participants or businesses. As a result, statistical agencies cannot measure its value accurately and generally exclude it from official GDP estimates. This is a limitation caused by inadequate legal and reliable data, not by final-goods supply, subsidies, or exports. Therefore, option A is correct.
Frequently asked questions
What is the correct answer to this question?
Lack of legal and reliable records
Why is this the correct answer?
GDP estimation requires information about the value of production and income generated in an economy. Illegal gambling is hidden, lacks dependable official records, and may not be reported by participants or businesses. As a result, statistical agencies cannot measure its value accurately and generally exclude it from official GDP estimates. This is a limitation caused by inadequate legal and reliable data, not by final-goods supply, subsidies, or exports. Therefore, option A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
