Per Capita Real GDP Is of Limited Use as a Measure

question 21

Multiple Choice

Per capita real GDP is of limited use as a measure of economic well being for all the following reasons, except:

• A)it says nothing about the quality of the environment.
• B)it does not reflect the degree of personal freedom in a society.
• C)it is not adjusted for changes in leisure time.
• D)it is not adjusted for changes in the rate of inflation.
• E)it says nothing about the distribution of income.

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Definitions:

Fair Value

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Income Statement

A financial statement that shows a company's revenues and expenses, culminating in a net profit or loss over a specific period.

Other than Temporary

A designation for impairments or losses that are expected to be permanent or long-lasting rather than temporary fluctuations.

Available-for-sale

A classification for financial assets implying that they can be sold in the future, but are not held primarily for trading purposes.