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:

Leading Cause

The primary factor or condition that is most commonly associated with a particular outcome, such as a disease or social issue.

Death

The cessation of all biological functions that sustain a living organism; often discussed in the context of philosophy, religion, and medicine.

Canada

a country in North America known for its vast landscapes, multicultural population, and as the second-largest country by area worldwide.

Life Expectancy

The average period that a person is expected to live, which varies across populations and is influenced by factors such as genetics, lifestyle, and the environment.