Many things that society values, such as good health, high-quality education, enjoyable recreation opportunities and desirable moral attributes of the population, are not measured as part of GDP, a. however, GDP is still a useful measure of society’s welfare because it measures a nation’s ability to consume b. therefore GDP is not a useful measure of society’s welfare unless is it measured per person c. however, GDP is still a useful measure of society’s welfare because these other attributes are the responsibility of government d. therefore GDP is not a useful measure of society’s welfare
Question
Many things that society values, such as good health, high-quality education, enjoyable recreation opportunities and desirable moral attributes of the population, are not measured as part of GDP,
a. however, GDP is still a useful measure of society’s welfare because it measures a nation’s ability to consume
b. therefore GDP is not a useful measure of society’s welfare unless is it measured per person
c. however, GDP is still a useful measure of society’s welfare because these other attributes are the responsibility of government
d. therefore GDP is not a useful measure of society’s welfare
Solution
The correct answer is:
a. however, GDP is still a useful measure of society’s welfare because it measures a nation’s ability to consume
Gross Domestic Product (GDP) is a measure of the market value of all final goods and services produced within a country in a given period. While it does not directly measure things like health, education, or moral attributes, it is still a useful measure of a society's economic welfare because it reflects a nation's ability to consume. Higher GDP generally means more goods and services are available for consumption, which can contribute to higher living standards.
Options b and d are incorrect because, while GDP per capita can provide a more accurate measure of individual welfare, GDP in general is still a useful measure of a society's economic welfare. Option c is incorrect because the responsibility of government does not determine the usefulness of GDP as a measure of society's welfare.
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