An element of economic welfare that is NOT effectively captured in growth measurements of real per capita GDP is

Question

Quizplus · Accepted Answer

Growth measurements of real per capita GDP do not account for improvements in the quality of goods and services, which can lead to an increase in economic welfare. For example, even if the total amount of goods and services produced in a year remains the same, if the quality improves and new products are introduced, people's standard of living can increase. Inflation (A), population growth (C), changes in the price level (D), and changes in the growth of output (E) are all factors that can affect real per capita GDP and are therefore captured in growth measurements.

An Element of Economic Welfare That Is NOT Effectively Captured