As a result of which of the following, large amounts of economic activ

QUESTION

As a result of which of the following, large amounts of economic activity in India are unrecorded and the official GDP figures of the country fail to tell the entire story of the economy?

A. A large population

B. Active bartering

C. Deregulation

D. Nationalization

E. Closed totalitarianism

ANSWER

B
In some countries the “official” figures do not tell the entire story. Large amounts of economic activity may be in the form of unrecorded cash transactions, or barter agreements. In some countries (India being an example), they are reportedly very significant. Known as the black economy, estimates suggest that in India it may be around 50 percent of GDP.