Even When Measured Accurately, GDP May Be a Misleading Measure

question 53

Multiple Choice

Even when measured accurately, GDP may be a misleading measure of economic welfare because it cannot account for

• A) the value of government spending and how efficiently we produce goods and services.
• B) how efficiently we produce goods and services and the value of non-market production.
• C) the value of non-market production and the consequences of an unequal distribution of income.
• D) the consequences of an unequal distribution of income and the value of government spending.
• E) the cost of intermediate goods and services.