A sharp increase in the number of medical errors increases the number of lawyers hired to determine medical malpractice settlements.This will
A)increase GDP and increase well-being in the economy.
B)increase GDP and decrease well-being in the economy.
C)decrease GDP and increase well-being in the economy.
D)decrease GDP and decrease well-being in the economy.

Question

Quizplus · Accepted Answer

The increase in lawyers hired to determine medical malpractice settlements would increase GDP because it represents an increase in economic activity. However, the well-being in the economy would likely decrease because the increase in medical errors suggests a decline in the quality of healthcare, which negatively impacts societal welfare.

A Sharp Increase in the Number of Medical Errors Increases