Why Is GDP NOT a Perfect Measure of Welfare

question 31

Multiple Choice

Why is GDP NOT a perfect measure of welfare?  

• A) because it treats a dollar spent on guns the same as a dollar spent on education 
• B) because it treats a dollar spent on exports the same as a dollar spent on imports 
• C) because it double counts the value of leisure time 
• D) because it counts illegal activities in the underground economy

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Definitions:

SATA

Stands for Serial ATA, an interface used for connecting storage devices like hard drives and solid-state drives to a computer motherboard, offering faster data transfer speeds compared to older technologies.

ESDI

Enhanced Small Device Interface is an obsolete computer interface standard used for connecting and controlling hard disk drives, superseded by later technologies like SCSI and SATA.

SCSI

Abbreviation for Small Computer System Interface, a set of standards for connecting and transferring data between computers and peripheral devices.

EFI Partition

A partition on a hard drive used as a part of the UEFI (Unified Extensible Firmware Interface) to store boot files and drivers.