GDP Is Not a Perfect Measure of Social Welfare and the Society's

question 127

Multiple Choice

GDP is not a perfect measure of social welfare and the society's economic well- being because:

• A) it does not include all economic activities in the economy.
• B) it does not say anything about the distribution of income.
• C) GDP accounting rules do not adjust for production that causes negative spillovers.
• D) all of the above.

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Definitions:

Subjective Well-Being

An individual's personal assessment of their own happiness and life satisfaction, often influenced by emotional and cognitive evaluations.

Aerobic Exercise

Involves physical activity that increases the heart rate and the body's use of oxygen, improving overall cardiovascular health.

Attention On Themselves

The cognitive process of focusing one's awareness on oneself, including one's thoughts, feelings, and actions.

Overestimate

To appraise something or someone more highly than is realistic or warranted.