Why Are Economists So Often Skeptical of Replacing GDP as a Measure

question 219

Multiple Choice

Why are economists so often skeptical of replacing GDP as a measure of well-being?

• A)Economists see little wrong, other than measurement errors, in the way GDP is computed.
• B)The alternatives involve value judgments about social goals that some or many economists find controversial.
• C)Economists think that the alternatives cannot take changes in price level into account in an acceptable manner.
• D)Economists believe that only market activity can be and should be measured.

---

Definitions:

Highest Bidder

In an auction, the person who offers the highest amount of money or value for the item or property being sold.

Sales Contract

An agreement between a buyer and seller outlining the terms of a sale, including price, delivery, and product specifications.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Merchant

An individual or business entity engaged in the sale of goods, particularly those specialized in a specific product or market.