A drawback of using market values to aggregate the quantities of goods and services produced in an economy is that
A) higher-priced items count more.
B) GDP increases when not all goods are produced in greater quantities.
C) market prices generally reflect the economic benefit consumers expect to receive from an item.
D) not all economically valuable goods and services are bought and sold in markets.
E) lower-priced items count morE.

Question

Quizplus · Accepted Answer

Not all economically valuable goods and services are bought and sold in markets, so using market values to aggregate the quantities of goods and services produced in an economy may not fully capture all economic activity. For example, unpaid work such as caring for children or the elderly is not included in GDP calculations.

A Drawback of Using Market Values to Aggregate the Quantities