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Why Is GDP NOT a Perfect Measure of Welfare

Question 112

Multiple Choice

Why is GDP NOT a perfect measure of welfare?  


A)  because it treats a dollar spent on guns the same as a dollar spent on education 
B)  because it treats a dollar spent on exports the same as a dollar spent on imports 
C)  because it double counts the value of leisure time 
D)  because it counts illegal activities in the underground economy

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