Many Things That Society Values, Such as Good Health, High-Quality

question 28

Multiple Choice

Many things that society values, such as good health, high-quality education, enjoyable recreation opportunities, and desirable moral attributes of the population, are NOT measured as part of GDP. According to most economists, why is GDP a useful measure of society's well-being?

• A) It has been measured for many years and changing this measure would create confusion.
• B) Providing these other attributes is the responsibility of government.
• C) It measures a nation's ability to produce the things that contribute to well-being.
• D) These other values cannot actually be measured.

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Definitions:

Profits

The financial gain made in a transaction or operation, calculated as the difference between revenue and expenses.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like willingness to pay, market segment, or purchase volume.

Higher Profits

An increase in the difference between a company's revenues and its expenses.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.