GDP is a good,but not the best,measure of:
A) the percentage change in the overall level of prices.
B) income inequality.
C) average living standards.
D) environmental quality.
E) the cost of living.

Question

Quizplus · Accepted Answer

GDP is a measure of the total value of goods and services produced in an economy, but it does not necessarily reflect the average living standards experienced by individuals in that economy as it does not account for income distribution, non-monetary factors like quality of life, and the distribution of wealth. Therefore, it is not the best measure of average living standards. Instead, other measures like the Human Development Index or the Genuine Progress Indicator take into account a broader set of factors such as education, health, and environmental quality to provide a more comprehensive measure of well-being.

GDP Is a Good,but Not the Best,measure Of