Gross Domestic Product (GDP)is Not a Perfect Measure of Welfare

question 133

Multiple Choice

Gross domestic product (GDP) is not a perfect measure of welfare because it:

• A)treats a dollar spent on guns 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:

Sample Variance

A measure of the dispersion or variability of a sample dataset, representing how much the data points differ from the sample mean.

Mound-Shaped

Description of a symmetric, bell-shaped distribution, often associated with the normal distribution.

Mean

A statistical measure that calculates the average value of a set of numbers by dividing the sum of all values by the number of values.

Median

The middle value in a dataset when it is ordered from smallest to largest, or the mean of the two middle numbers if there is an even number of values.