Asked by Mallory Connell on Jun 16, 2024
Verified
Gross domestic product (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.
Gross Domestic Product
The total market value of all final goods and services produced within a country's borders in a specific time period, commonly used as a measure of economic performance.
Underground Economy
Economic activities that occur outside of official regulation or taxation systems, often including undocumented labor and illegal trade.
- Acknowledge the restrictions and negative evaluations connected with GDP when measuring economic prosperity and social welfare.
Verified Answer
Learning Objectives
- Acknowledge the restrictions and negative evaluations connected with GDP when measuring economic prosperity and social welfare.
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