GDP is a useful measure for tracking changes in the market value of overall economic activity over time, but it is not a measure of the well-being of a nation's residents because it fails to account for nonmarket transactions, the amount and quality of leisure time, environmental or safety issues, labor market discrimination, and other factors that influence general welfare.

True / False.

Question

Social Studies

Monique Atkinson

20 December, 03:40

GDP is a useful measure for tracking changes in the market value of overall economic activity over time, but it is not a measure of the well-being of a nation's residents because it fails to account for nonmarket transactions, the amount and quality of leisure time, environmental or safety issues, labor market discrimination, and other factors that influence general welfare.

True / False.

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Answers (1)

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Andrea Hood · Answer 1

True.

Explanation:

GDP is the sum of all final goods and services produced by a country, state, or city, usually within a year. In other words, we can say that GDP is an indicator for measuring the country's economic activity. Economists often say that GDP is a good indicator of growth but not of development, which should include other data such as income distribution, investment in education, among other things; With this we can state that GDP does not serve as a way of measuring the well-being of a nation's residents.