GDP Fails to Measure Changes in

question 171

Multiple Choice

GDP fails to measure changes in

• A)the prices of products caused by inflation
• B)the market value of goods and services since it uses market prices for valuation
• C)the quality of existing products that do not cause a change in price
• D)leisure time,since it is valued at the minimum wage and not the true opportunity cost of lost wages
• E)the production of services that are produced in the economy

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Definitions:

Crystallized Intelligence

Skills and knowledge acquired over the course of one’s lifetime based on formal learning and experiences, which does not decrease over time.

Biopsychological Potential

The capacity for behavioral or mental functioning, given both biological (genetic, neurological) and psychological (emotional, cognitive) factors.

Cultural Setting

The environment, including social norms and practices, that is shaped by the cultural background of a group or community.

Hierarchical Model

A system of organization where entities are ranked one above the other according to status or authority.