GDP Is Not a Perfect Measure of Welfare Because It

question 70

Multiple Choice

GDP is not a perfect measure of welfare because it

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

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Definitions:

Retina

Photoreceptor-containing layer of tissue in an eye.

Olfactory Receptors

Olfactory receptors are specialized proteins located in the olfactory epithelium that detect and respond to odor molecules, allowing for the sense of smell.

Smell

The sensory perception of odors or scents, detected by the olfactory system in the nose.

Mechanoreceptors

Mechanoreceptors are sensory receptors that respond to mechanical pressure or distortion, involved in sensations such as touch, pressure, and sound.