GDP Is Not a Perfect Measure of Welfare Because It

question 15

Multiple Choice

GDP is not a perfect measure of welfare because it

• A) treats a dollar spent on candy bars 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:

National Association

An organization or group formed to unite and represent the interests of its members at a national level in a specific field.

Civil Rights

Civil rights are the rights of citizens to political and social freedom and equality, often protected by law against discrimination or oppression.

Ida B Wells

An African American journalist, abolitionist, and feminist who led an anti-lynching crusade in the United States during the 1890s.

Lynching

The illegal execution of an individual by a mob, often by hanging, without a legal trial, historically common in the United States as a form of racial terror against African Americans.