GDP Is Not a Perfect Measure of Welfare Because It

question 70

Multiple Choice

GDP is not a perfect measure of welfare because it

• A)treats a dollar spent on guns the same as a dollar spent on education
• B)treats a dollar spent on exports the same as a dollar spent on imports
• C)double counts the value of leisure time
• D)double counts depreciation
• E)counts illegal activities in the underground economy

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Definitions:

Rational Functions

In psychology, this refers to cognitive processes involved in logical reasoning, decision-making, and problem-solving.

Extraversion

An attitude of the psyche characterized by an orientation toward the external world and other people.

Introversion

An attitude of the psyche characterized by an orientation toward one’s own thoughts and feelings.

Dominant Attitude

The prevailing or most common attitude or outlook among a group or in an individual’s personality, often influencing behavior and perceptions.