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GDP and economic well-being

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GDP is a less than perfect measure of economic well-being. It may be faulted for each of these practices EXCEPT that it:
does not take leisure time into account.
involves multiple counting.
does not take psychic costs into account.
does not take psychic income into account.

Net domestic product is equal to:
gross national product.
the inflation rate.
national income (NI) plus corporate profits taxes.
NI plus indirect business taxes.

We do NOT count __________ as part of GOP
price increases
transfer payments
final goods
depreciation

About seven out of ten dollars of our GDP is spent on:
government purchases.
net exports.
investment spending.
consumer goods.

The value actually earned by members of households who supply the inputs necessary to produce GDP is called:
net investment.
national income
personal income.
disposable income.

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Solution Summary

The measurement of GDP

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GDP is a less than perfect measure of economic well-being. It may be faulted for each of these practices EXCEPT that it:

involves multiple counting.

GDP only counts the final value of goods and services produced. Thus, leisure and volunteer activities do not count. Psychic costs involve such things as stress which decrease the quality of life, but are difficult to account for in monetary terms. Psychic income is ...

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