Many economists argue that real GDP is NOT a good measure of economic well-being because
A) it overvalues the increases in nonmarket transactions.
B) it excludes Social Security payments made to retirees.
C) it includes the taxes we pay to the federal government.
D) it excludes the environmental quality of life.

Question

Quizplus · Accepted Answer

Real GDP does not take into account the environmental quality of life. It only considers the economic output of goods and services, without considering the impact on the environment or natural resources. Therefore, it is not a comprehensive measure of overall well-being.

Many Economists Argue That Real GDP Is NOT a Good