Do We Get a Useful and Meaningful Statistic by Dividing

question 88

Multiple Choice

Do we get a useful and meaningful statistic by dividing the national debt by the GDP?

• A)No - we are essentially "dividing apples by oranges," which is unhelpful.
• B)No - the GDP is not a meaningful measure of the well-being of the economy.
• C)Yes - we can then see how much of the national debt is owed by each individual citizen.
• D)Yes - we can see the burden of the debt in relation to the size of the economy.
• E)No - dividing a stock by a flow can never be sensible.

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Definitions:

Unincorporated Business Associations

Groups or partnerships operating a business without forming a legal corporation, thus not enjoying the benefits or protections of corporate status.

Duty Of Obedience

An obligation to act in accordance with the directives or policies of an organization, typically refers to nonprofit boards or similar entities.

Personally Liable

The responsibility of an individual to fulfill debt or obligations from their own assets, rather than those of a corporation or entity.

Gross Returns

The total return on an investment before any deductions are made for costs or fees.