Which of the Following Is Not a Problem Associated with GDP

question 67

Multiple Choice

Which of the following is not a problem associated with GDP as a measure of social welfare?

• A)It excludes many nonmarket activities.
• B)It values all types of output equally.
• C)It excludes pollution damage.
• D)It excludes intermediate goods as a separate entry.
• E)It excludes the value of leisure time.

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Definitions:

Monopolistically Competitive

A market structure featuring many firms selling products that are similar but not identical, allowing for some degree of market power and price setting.

Long Run

A period in economics during which all factors of production and costs are variable, allowing firms to adjust all inputs.

Deli

A short form for delicatessen, which is a store or counter specializing in prepared foods, sandwiches, and specialty groceries.

Zero Economic Profits

A condition in perfect competition where firms earn just enough revenue to cover their total costs, leading to no supernormal profit in the long term.