Why May GDP Figures Be Criticized for Not Being an Accurate

question 193

Multiple Choice

Why may GDP figures be criticized for not being an accurate reflection of the economic welfare of a country?

• A)They overstate economic welfare by not including certain nonmarket activities such as the productive work of homemakers.
• B)They understate economic welfare by including expenditures undertaken to offset or correct pollution.
• C)They understate economic welfare by not taking into account increases in leisure.
• D)They overstate economic welfare by not reflecting improvements in product quality.
• E)They understate economic welfare by not including depreciation.

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Definitions:

Brain Damage

A physical injury or dysfunction of the brain that can result from accidents, medical conditions, or other causes, leading to cognitive, physical, or emotional impairments.

Blood Supply

The provision or transfusion of blood or its components to maintain adequate levels in the body, crucial for delivering nutrients and oxygen, and removing waste products.

Small-For-Date

A term used to describe a baby that is smaller than the usual size for the number of weeks of pregnancy.

Preterm

Refers to a baby born before 37 weeks of gestation, also known as premature birth.