GDP Is Not a Perfect Measure of Welfare Because It

question 15

Multiple Choice

GDP is not a perfect measure of welfare because it

• A) treats a dollar spent on candy bars the same as a dollar spent on education
• B) treats a dollar spent on exports the same as a dollar spent on imports
• C) double counts the value of leisure time
• D) double counts depreciation
• E) counts illegal activities in the underground economy

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Definitions:

Efferent Neurons

Motor neurons that convey impulses away from the brain.

Nociception

The process wherein sensory nerve cells are stimulated in response to harmful stimuli resulting in the perception of pain.

Sensory Tracts

Pathways in the nervous system that relay sensory information from the body to the brain.

Dorsal Tracts

Nerve pathways in the spinal cord that transmit sensory information from the body to the brain.