Economics
GDP and Welfare
Practice questions
Why is real GDP better than nominal GDP for welfare comparisons?If government spending on prisons rises because crime increases what is the correct interpretation?If real per capita GDP rises but life expectancy falls what becomes clear?If fuel sales rise because commuting becomes longer in a city what effect on welfare is possible?Why does the composition of GDP affect welfare?Which limitation of ordinary GDP appears when natural forests are cut and timber is sold?Why does GDP growth from higher health spending during a pandemic not prove welfare growth?When may most households' real income fall even though per capita GDP rises?Why may measured GDP rise if many household services shift from unpaid work to paid market services?When will the positive relationship between GDP and economic welfare be stronger?If real GDP rises by four percent but the estimated cost of environmental damage rises by six percent what is the most appropriate conclusion?What is the main reason for combining life expectancy and literacy with GDP?If GDP rises but access to safe drinking water declines which conclusion is appropriate?If a broker earns commission on the sale of an old house what is included in current GDP?What may be the effect of jobless GDP growth on broad welfare?In which situation may actual welfare exceed recorded market value because of a positive externality?If output rises but workplace accidents also increase sharply which conclusion is correct?What is possible if better public transport reduces private fuel sales and travel time?If the top five percent receives a very large share of national income, what is the problem with relying only on per capita GDP?If the quality of a public service improves while its cost remains unchanged, what measurement problem may arise in GDP?