One Shortcoming of Real GDP as an Indicator of Society's

question 154

Multiple Choice

One shortcoming of real GDP as an indicator of society's social well-being is that it fails to take into account the:

• A)growth in productivity.
• B)increase in the quantity of goods.
• C)non-market production.
• D)change in the price level.

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Definitions:

Permanent Secretariat

A permanent administrative office or department, especially within large organizations or international bodies, which carries out routine secretarial duties.

Financial and Monetary Policies

The set of measures by government agencies, such as controlling money supply and interest rates, aimed at managing the economy.

G20

An international forum for governments and central bank governors from 19 countries and the European Union, aimed at discussing policy pertaining to the promotion of international financial stability.

Head-of-government

The official who leads the executive branch of a government, typically responsible for implementing and enforcing laws and overseeing the day-to-day administration.