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One Criticism of Using Gross National Product (GNP)as a Basis

Question 17

Multiple Choice

One criticism of using Gross National Product (GNP) as a basis to determine how well countries are doing is that the GNP


A) does not take into account prices for locally con­sumed goods despite the fact that the cost of locally consumed goods affects purchasing power.
B) is a biased measure because it is based on the U.S. dollar.
C) is an outdated measure that does not take into account the move toward standardized currencies such as the euro.
D) relies too heavily on purchasing power to determine the economic health of countries.

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