One Shortcoming of Using GDP as a Central Variable for Policy

question 182

Multiple Choice

One shortcoming of using GDP as a central variable for policy objectives is that it fails to measure

• A) growth in productivity.
• B) increases in the quantity of goods.
• C) non-market production.
• D) changes in the price level.
• E) increases in the number of imported goods.

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Definitions:

Maladaptive

Behaviors or thoughts that are counterproductive and interfere with an individual’s ability to effectively cope with stress, challenges, or goals.

Impaired Functioning

A reduction in the ability to perform daily tasks and activities effectively, often due to physical, mental, or emotional disabilities or conditions.

Reliability

The consistency of a measure or instrument, indicating how dependably it produces similar results under the same conditions.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.