Despite Some Problems with Equating GDP with Economic Well-Being, Higher

question 176

Multiple Choice

Despite some problems with equating GDP with economic well-being, higher real GDP per person does imply greater economic well-being because it tends to be positively associated with:

• A)crime, pollution, and economic inequality.
• B)better education, health and life expectancy.
• C)poverty, depletion of nonrenewable resources, and congestion.
• D)unemployment, availability of goods and services, and better education.

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Definitions:

Economic Reasons

Factors or situations related to the structure and functioning of the economy that influence decisions and behaviors.

Holding Cash

The practice of keeping liquid assets on hand for transactional purposes or as a precaution against unforeseen expenses.

Maturity Matching Principle

This principle suggests that the duration of assets and liabilities in a company's portfolio should be aligned, meaning short-term assets should be financed with short-term liabilities, and long-term assets with long-term liabilities.

Long-term Funding

Financing obtained for a period longer than a year, used for acquiring assets, structural projects, or significant investments.