Arguments Against Replacing GDP with a Broader Measure of Living

question 147

Multiple Choice

Arguments against replacing GDP with a broader measure of living standards include all of the following EXCEPT

• A) most users of GDP accounts would not like to see them replaced by something else.
• B) a broader measure of living standards would require subjective valuations of many difficult-to-measure activities.
• C) GDP should co-exist with broader measures of living standards,but should not be replaced by them.
• D) changes to the definition of output in the GDP accounts could not be made in isolation without also making changes to the definition of employment,for the sake of consistency.
• E) replacing GDP with a broad measure of living standards would call for input from non-economists.

---

Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, often used in finance to gauge the volatility of an investment.

Professional Portfolio Management

The disciplined practice of managing an investment portfolio by experts to achieve specific financial goals.

Low-Cost Diversification

An investment strategy that spreads investments across various assets to minimize risk without incurring high fees.

Specified Risk Level

A predefined degree of risk that an investment or portfolio is expected to adhere to.