Economics
GDP and Welfare
Practice questions
If timber production rises through deforestation but soil erosion also increases what should be done in welfare analysis?Why may social welfare rise if real GDP remains constant but income distribution becomes more equal?If nominal GDP rises by twelve percent but the price level rises by ten percent, what can be said about real growth?In which example may actual welfare exceed recorded GDP?If government medical spending rises sharply because of a pandemic, which conclusion would be incorrect?What does it indicate if the poverty rate rises along with GDP growth?If improved public transport reduces private vehicle fuel sales, what is possible?If a production activity causes illness to nearby people but the producer does not bear the cost, what is it called?If a country's real per capita GDP rises but literacy falls, what is the most balanced conclusion?If countries A and B have the same total GDP but A has a smaller population and B a larger population, which has higher per capita GDP?Why may measured GDP rise if unpaid family eldercare is replaced by a paid institution?Education spending creates knowledge benefits for people who do not directly pay for them. What does this show?If a large part of GDP growth comes from accident repairs and medical treatment what caution is needed?How does green GDP improve upon ordinary GDP?If a country's income rises but mental health and social security weaken what is the welfare assessment?If traffic congestion increases fuel use and vehicle repairs what may GDP show?Two countries have equal total GDP but one has highly unequal income distribution. Which conclusion is more likely?If factory output rises but workers experience more illness and less leisure what conclusion is appropriate?Why is welfare more likely to rise if real per capita GDP increases and income distribution becomes more equal?In which example may GDP understate a social benefit?