Which of the Following Statements Is True

question 61

Multiple Choice

Which of the following statements is true?

• A) Nominal GDP is a good measure of social welfare.
• B) GDP per capita is a complete measure of social welfare.
• C) Crime and pollution reduce social welfare which reduces GDP.
• D) GDP is not necessarily the best measure of social welfare.

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Definitions:

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund public expenditures.

Corporations' Profits

The financial earnings that remain for a corporation after all expenses, taxes, and costs have been deducted from total revenue.

Taxes

Mandatory financial charges or levies imposed by a government on its citizens and businesses as a source of revenue for the government, used to fund public services and goods.

Labor

Human effort, including both physical and mental effort, used in the production of goods and services.