A Shortcoming of Using Real GDP as a Measure of Economic

question 141

Multiple Choice

A shortcoming of using real GDP as a measure of economic well-being is that it does not measure changes in:

• A) production.
• B) environmental quality.
• C) prices.
• D) unemployment.
• E) interest rates.

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Definitions:

Defensive Attribution

A cognitive bias in which individuals attribute causes for behaviors or events to external factors to protect their self-esteem.

Internal Causes

Factors within an individual, such as traits, beliefs, or desires, that explain or influence their behavior.

Stable Causes

Factors or conditions that consistently contribute to an outcome or effect with little variation over time.

Actor-Observer Bias

A cognitive bias involving the tendency to attribute one's own actions to external factors while attributing others' actions to their personality or disposition.