GDP does NOT measure the well-being of a nation's residents because it
A) excludes the sale of secondhand goods.
B) excludes the value of intermediate goods.
C) includes the value of final goods and services produced in the economy.
D) excludes nonmarket transactions.

Question

Quizplus · Accepted Answer

GDP excludes nonmarket transactions, such as household production, volunteer work, and the underground economy. These activities contribute to the well-being of individuals in a society, but they are not captured by GDP. Therefore, GDP is an incomplete measure of well-being.

GDP Does NOT Measure the Well-Being of a Nation's Residents