The Gross Domestic Product Is Not a Good Measure of the Standard

question 128

Multiple Choice

The gross domestic product is not a good measure of the standard of living in a nation because it

• A)includes the cost of health insurance.
• B)excludes payments for pollution control equipment.
• C)does not account for the size of the population.
• D)does not account for the cost of police protection.

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Definitions:

Unintended Consequences

Outcomes that occur as a result of actions or policies that were not anticipated or intended by the actors involved.

Economic Change

Shifts in economic conditions, such as growth, recession, or structural adjustments, affecting markets and societies.

Free Lunch

An expression indicating that it is impossible to get something for nothing, underscoring the idea that every choice has a cost.

Resources

Assets, materials, and commodities available for use in the production process to generate goods or services.