True or False:
1. In periods of inflation, real GDP will tend to be greater than nominal GDP growth.
2. The measure of economic welfare most often cited is real per capita gross domestic product.
3. In a country with a growing population, real GDP per capita could be falling at the same time that real GDP was rising.
4. Nonmarket transactions, the underground economy, and the value of leisure are all omitted from official measures of GDP.
5. Real GDP is a highly accurate measure of the economic welfare of a nation.
6. Marrying one’s housekeeper would leave reported GDP unchanged.
7. In less-developed countries, where a significant amount of food and clothing output is produced in the home, the failure to include nonmarket economic activity in GDP is a serious deficiency.
8. Almost all of the underground economy represents income from illegal sources, such as drug dealing.
9. GDP is decreased to reflect pollution resulting from production.
10. Severe shortcomings are involved when using real GDP as a welfare measure. Nonetheless, at the present time, no alternative measure is generally accepted as better.