A. GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods
B. The economic contribution of a housewife is a peasant family may not be measured is GNP is poor country
C. GNP in understated for developing countries since many of their labor intensive good have no impact on exchange rate since they are not traded
D. GNP is overstated for for countries where the price of foreign exchange is less than market clearing price
Correct Answer: GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods ✔
Last Updated: June 18, 2019