The growth of GDP may understate changes in the economy's well-being over time if the:
A)distribution of income becomes increasingly unequal.
B)quality of products and services improves.
C)environment deteriorates because of pollution.
D)amount of leisure decreases.

Question

Quizplus · Accepted Answer

GDP growth may understate well-being if the quality of products and services improves, as GDP measures quantity but not improvements in quality, which can enhance well-being without being reflected in GDP figures.

The Growth of GDP May Understate Changes in the Economy's