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Do We Get a Useful and Meaningful Statistic by Dividing

Question 14

Multiple Choice

Do we get a useful and meaningful statistic by dividing the national debt by the GDP?


A) No - we are essentially "dividing apples by oranges," which is unhelpful.
B) No - the GDP is not a meaningful measure of the well-being of the economy.
C) Yes - we can then see how much of the national debt is owed by each individual citizen.
D) Yes - we can see the burden of the debt in relation to the size of the economy.
E) No - dividing a stock by a flow can never be sensible.

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