added in back-alley workshops, outdoor markets, and other cash-based corners of the economy.
Source: Raymond Zhong, "On Close Inspection, India's Sharp Growth Picture Gets Fuzzy," Wall Street Journal, May 1, 2016.
Working "off the books" refers to
A. earning income that is not reported for tax purposes.
B. reporting false income paid to workers.
C. volunteering.
D. working in exchange for goods and services.
The problems of small firms working off the books and far from major cities would make it difficult for the Indian government to accurately measure GDP because the
A. measures of GDP will be understated if these practices are common.
B. measures of value added will be distorted.
C. firms do not employ enough people to report accurately to the government.
D. measures of GDP will be overstated if these practices are common.
If the government cannot accurately measure GDP,
A. there will be little impact if the size of the overall economy is large, rather than small.
B. there will be little impact in the short run, and even less in the long run, so long as the inaccuracies are consistent.
C. businesses will not be able to correctly gauge the market, and the government will be unable to design efficient tax policies.
D. they will be unable to make a case for foreign aid.