CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

The size of underground economies differs across countries. In Greece, the underground economy has been estimated to be as big as 30% of GDP; in Spain, 25%; in Italy, 20%; and in the United States, about 7%. Given this information, official GDP measures understate true economic activity the most in ______.

A. Greece
B. The United States
C. Italy
Correct Answer: A

Since Greece has the reportedly largest relative underground economy, official statistics underestimate Greek production the most.

User Contributed Comments 2

User Comment
johntan1979 No wonder they are in such deep s*** now
jonan203 lol, greece...how ironic
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