GDP May Not Be a Reliable Indicator of the Standard

question 57

Multiple Choice

GDP may not be a reliable indicator of the standard of living of a country because it does not include

• A)spending on investment goods.
• B)the value of goods and services produced outside the market system.
• C)discretionary spending of non-resident workers.
• D)the estimated value of goods to individuals.
• E)the private costs of consumption.

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Definitions:

Protecting the Environment

Actions or policies aimed at preserving and safeguarding the natural environment from damage or degradation due to human activities.

Peacekeeping

Activities and operations undertaken by a military or civilian force to maintain or restore peace in areas of conflict.

Executive Orders

Orders given by the U.S. President to oversee the functioning of the federal government.

Law-Making Powers

The authority granted to legislative bodies to enact, amend, or repeal laws.