Measures of GDP May Understate the Economic Well- Being of People

question 37

Multiple Choice

Measures of GDP may understate the economic well- being of people in developing countries if those countries tend to

• A)import much more than they export.
• B)emphasize agricultural and resource- based production.
• C)have a high degree of foreign direct investment.
• D)have very high rates of pollution.
• E)have a large share of non-market activities.

---

Definitions:

Down Payment

An initial, upfront partial payment for the purchase of expensive items/services, typically associated with real estate or vehicles.

Accrued Interest

The interest that has accumulated on a bond, loan, or other financial instrument since the last interest payment was made.

Compounded Annually

Interest on an investment or loan calculated once a year, where each year's interest is added to the principal.

Future Value

The estimated value of an investment at a future date, taking into account variables like interest rates or compound interest, used in financial planning and assessment.