Application 4.3, "A Tale of Two Families,"points out how:
A) GDP may not be a good measure of the quality of life.
B) inflation makes it difficult for people to buy their first home.
C) voluntary unemployment may turn into involuntary unemployment.
D) productivity is higher in family-owned businesses than in large corporations.

Question

Quizplus · Accepted Answer

GDP (Gross Domestic Product) is a measure of a country's economic output, but it does not account for the distribution of income among residents or factors that contribute to the quality of life such as environmental quality, leisure time, and social services. Therefore, a high GDP might not reflect a high quality of life for all citizens, which is why option A is correct.