Nominal Gross Domestic Product (GDP)is a Poor Measure of Economic

question 42

Multiple Choice

Nominal gross domestic product (GDP) is a poor measure of economic growth because it

• A) does not count investment by private businesses.
• B) overstates the importance of consumer spending.
• C) does not include government spending.
• D) ignores imports and exports.
• E) does not consider changes in prices or population growth.

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Definitions:

Net Worth

The total assets minus total liabilities of an individual or company, representing the owner's equity.

Future Benefit

An economic advantage or return that is expected to be received in the future as a result of current or past actions.

Asset

A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Entity's Activities

Operations or actions undertaken by an entity, which can include its core business operations, investments, financing, and other actions that it engages in.