GDP is not a good measure of:
A) the total income earned by all people in the country.
B) the average living standards of people in the country when adjusted for population.
C) the output produced by people in the country.
D) the income inequality that exists between people in the country.
E) the overall health of the economy.

Question

Quizplus · Accepted Answer

While GDP does measure the total output produced by people in the country and is commonly used to indicate the overall health of the economy, it does not directly measure income inequality between people in the country. Other measures such as the Gini coefficient or the distribution of income would be more appropriate for measuring this aspect.

GDP Is Not a Good Measure Of