Which of the following is not a reason to be cautious about using GDP as an indicator of development?
a. Developing countries may not have many statisticians.
b. GDP includes the value of harmful products.
c. Many goods and services are exchanged for others and are not recorded as having a specific value.
d. Traditional methods of comparing countries' GDP data have numerous statistical weaknesses.
e. All of the above are reasons for caution.
Question 2
What are accounting, or shadow prices for project appraisal? In what way do they differ from market prices, and why do we need them? Additional question or part of question: How can reference to world prices help countries gauge the real
opportunity costs of development projects?
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