Economics
GDP and Welfare
Practice questions
If the government spends heavily on cleaning a polluted river, how does conventional GDP respond?If a person leaves a low-paid job to provide unpaid family care, what effect on GDP and welfare is possible?Why is the Human Development Index considered a broader welfare indicator than GDP?Why may net domestic product sometimes provide a better indication of sustainable welfare than GDP?If total real GDP remains constant but the average workweek becomes shorter, what is a possible welfare outcome?Which statement best describes the relationship between GDP and social welfare?Health-care spending rises because pollution-related illnesses have increased. What is the correct analysis of the rise in GDP?If technological improvement raises product quality but the price index does not fully capture the quality change, what problem arises in real GDP as a welfare indicator?A digital service was previously free but is now sold through subscriptions. If usage remains unchanged what may happen?If real GDP per capita rises while the real income of the poorest group falls which conclusion is correct?Under which condition can growth in real GDP harm future welfare?Why are imported final goods subtracted in GDP accounting and how does this relate to welfare?If everyone feels safer but the improvement occurs without additional market production what will happen?In an economy both real GDP and population rise by five percent. What is the approximate effect on real GDP per capita?If GDP growth mainly comes from luxury goods while basic public services deteriorate what is the appropriate welfare conclusion?Sales of household pollution-control devices raise GDP. Why cannot this be treated as a pure welfare gain?If workplace accidents rise sharply along with output growth which assessment of GDP and welfare is correct?Two economies have equal real GDP per capita but the first has more public parks and cleaner air. What is a likely conclusion?Why is the imputed value of housing services from owner-occupied homes included in GDP?If a country's GDP rises but both life expectancy and literacy decline which statement is appropriate?