GDP is not a perfect measure of material well-being because it ignores
A)production of goods and services by the government
B)goods produced in the United States but shipped overseas
C)negative externalities
D)consumer spending on services
E)business spending on equipment

Question

Quizplus · Accepted Answer

GDP does not account for negative externalities such as pollution or the depletion of natural resources, which can have a significant impact on material well-being, but are not reflected in GDP figures. Choices A, B, D, and E are all included in GDP calculations.

GDP Is Not a Perfect Measure of Material Well-Being Because