Real GDP does not show the state of economic welfare in a country in part because GDP omits
I. household production.
II. leisure time available.
III. the quality of the environment.
A) I only
B) I and III
C) II and III
D) I, II and III

Question

Quizplus · Accepted Answer

Real GDP does not fully capture the state of economic welfare because it does not account for non-market transactions like household production, the value of leisure time, or the quality of the environment, all of which significantly impact welfare.

Real GDP Does Not Show the State of Economic Welfare