One Criticism of Using Gross National Product (GNP)as a Basis

question 67

Multiple Choice

One criticism of using Gross National Product (GNP) as a basis to determine how well countries are doing is that the GNP

• A) does not take into account prices for locally con­sumed goods despite the fact that the cost of locally consumed goods affects purchasing power.
• B) is a biased measure because it is based on the U.S. dollar.
• C) is an outdated measure that does not take into account the move toward standardized currencies such as the euro.
• D) relies too heavily on purchasing power to determine the economic health of countries.

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Definitions:

British Columbia

A province located on the west coast of Canada, known for its natural beauty and diverse geography.

Defence Mechanism

Psychological strategies employed unconsciously to protect oneself from anxiety-arising thoughts or feelings.

Stress

A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.

Rationalization

The process of providing reasonable explanations to justify behaviors or decisions that may otherwise appear irrational.