Under what circumstances do rates of economic growth understate the growth of economic well-being? A. Economic growth has occurred because of the increased length of the workweek. B. Product quality has improved. C. Air quality has declined as real GDP has increased. D. Population has grown faster than real output.

The correct answer is B. Product quality has improved.

Explanation:

The economic growth of a country relies on the development of the ongoing work process. I explain. A work process is a way of working. So far, human beings have practiced four different ways of working. Thus, for example, the last one in progress, dates from about six centuries ago. I call it artificial production process. Artificial because, from an idea that solves a problem, the entire production process is designed, and even the appropriate machine and tools for the production of said good.

Well-being is the result of deciding how the Net Result of economic activity is distributed. And in the case of an economy based on the artificial production process, welfare is the result of deciding how the profits generated by factories are distributed. Thus, for example, the current type of distribution is the continuation of a decision taken by society approximately ten thousand years ago. At that time, the company decides that the entire Net Income be appropriated by the owner of the means of production. It is the origin of the Individualist Distribution.