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.

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Definitions:

Offer Termination

Refers to the process by which an offer is revoked or ended before it is accepted, effectively nullifying the possibility of a contract.

Cure and Smoke

The process of preserving and flavoring food, particularly meats, by applying a combination of salt, nitrates, and sometimes sugar (curing) and then exposing it to smoke from burning or smoldering material, usually wood (smoking).

Revocation Effective

The point in time when the cancellation or withdrawal of a legal privilege, right, or contract becomes officially valid.

Irrevocable Offer

An offer that cannot be withdrawn or revoked for a certain period once made, holding the offeror to their promise.