GDP tends to overstate economic well-being because it takes into account:
A)all of the illegal activities conducted by organized crime in the economy.
B)spending on intermediate goods that are used to produce final goods.
C)health care costs related to the consumption of products with adverse health effects.
D)the personal labour time that car owners spend working on car repairs and maintenance of their vehicles.

Question

Quizplus · Accepted Answer

GDP includes spending on health care costs related to adverse health effects, which does not necessarily reflect an improvement in economic well-being.

GDP Tends to Overstate Economic Well-Being Because It Takes into Account