Which of the Following Is a Limitation of Real GDP

question 39

Multiple Choice

Which of the following is a limitation of real GDP as a measure of economic well-being?

• A) Little is revealed about the distribution or composition of output.
• B) Output is overstated because intermediate production is included.
• C) It fails to account for the consumption of a country's productive capacity.
• D) It measures only a country's expenditures, not its income.
• E) It fails to account for expenditures by the public sector.

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Definitions:

Utility

In economics, utility refers to the total satisfaction received from consuming a good or service.

Mass Customization

A production and marketing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Individual Features

Specific characteristics or attributes that distinguish one person or thing from another.

Target Market

A specific group of consumers at whom a company aims its products and services, characterized by similar demographic, psychographic, or behavioral traits.