Many economists argue that real GDP is
A) not a good measure of economic well-being because it overvalues increases in leisure time.
B) not a good measure of economic well-being because it excludes increases in leisure time.
C) a good measure of economic well-being because it includes increases in leisure time.
D) a good measure of economic well-being because it includes changes in personal safety.

Question

Quizplus · Accepted Answer

Many economists argue that real GDP is not a good measure of economic well-being because it excludes increases in leisure time. This is because while real GDP measures the value of goods and services produced in an economy, it does not take into account non-market activities such as leisure time, which can contribute to people's well-being. In addition, real GDP does not account for negative externalities such as pollution and other environmental damages that may arise from increased economic activity. Therefore, real GDP may not be an accurate indicator of overall economic well-being.

Many Economists Argue That Real GDP Is