What is the main limitation of comparing California’s GDP directly with a country’s GDP? » Graduate U.S. Economy MCQ » MCQ Academy

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What is the main limitation of comparing California’s GDP directly with a country’s GDP?

California is legally an independent country.
Output size is comparable, but political and fiscal institutions are not equivalent.
Countries do not have GDP.
GDP cannot be measured for states.

California is legally an independent country.
Output size is comparable, but political and fiscal institutions are not equivalent.
Countries do not have GDP.
GDP cannot be measured for states.

Note

Output size is comparable, but political and fiscal institutions are not equivalent. is correct. Comparing California’s GDP with national economies is a comparison of output size and does not imply equivalent political or fiscal institutions.

Tags: California Economy, California Facts, GDP and Economic Measures

Note

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