One Problem with Using Real Gross Domestic Product as a Measure

question 60

Multiple Choice

One problem with using Real Gross Domestic Product as a measure of social welfare is that

• A)it fails to count home production.
• B)it fails to count services, a growing part of the economy.
• C)it double, triple, and sometimes quadruple counts goods that are produced in stages.
• D)it fails to account for imports, a growing part of the economy.

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Definitions:

Distribution of Income

The way in which a nation's total income is spread among its population.

United States

A nation located in North America that is made up of 50 states and one federal district, renowned for its significant economic size and varied demographics.

Minimum Wage

The lowest legal salary that employers can pay workers, set by government policy to ensure a minimum standard of living for employees.

Unemployment

The state of being without a job despite actively looking for employment, often measured by the unemployment rate, which is the percentage of the labor force that is jobless.