Real GDP Is Not a Perfect Indicator of Economic Welfare

question 96

Multiple Choice

Real GDP is not a perfect indicator of economic welfare because ________.

• A)it includes a direct measure of health and life expectancy
• B)it underestimates inflation
• C)it includes the underground economy
• D)economic welfare depends on many factors not measured or not measured accurately by real GDP

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Definitions:

Referent Power

Referent power is the capacity to influence other people because of their desire to identify personally with you.

Group Pressures

The social influence exerted by peers or a group to encourage an individual to conform to the group’s norms and expectations.

Force-Coercion Strategy

Pursues change through formal authority and/or the use of rewards or punishments.

Political Alliances

Partnerships or associations formed between political entities, such as countries or parties, to advance shared goals or interests.