One Major Reason That GDP Is an Inaccurate Measure of the "Quality

question 86

Multiple Choice

One major reason that GDP is an inaccurate measure of the "quality of life" is that

• A)people frequently buy things they do not want.
• B)it does not include the value of leisure.
• C)it is statistically very inaccurate.
• D)it cannot be adjusted for changes in prices.
• E)it includes net exports.

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Definitions:

Market

A system or arena in which commercial dealings are conducted, often defined by the goods or services available for trade.

Externalities

Financial outcomes or repercussions that impact third parties who are not directly involved; these can be positive or negative.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace in adjusting supply and demand autonomously.

Marketplace

A physical or digital venue where buyers and sellers come together to exchange goods, services, or information.