Economics
GDP and Welfare
Practice questions
GDP may rise because spending on pollution control increases. What caution applies to welfare?What limitation arises because GDP does not directly measure leisure time?What should be understood if repair spending rises after a natural disaster in GDP?If only market transactions are counted in GDP, which activity may generally be missed?Why can welfare be low even if GDP is high?Why may the full damage of pollution not be shown in GDP?What problem occurs in measuring illegal activities in GDP?Why is pension generally not included in GDP?Why is an unpaid meal service prepared at home generally not included in GDP?If the same meal is bought from a restaurant, what will happen in GDP?What is an important limitation of per capita GDP?Why can welfare be low even when GDP is high?What problem is created by ignoring environmental loss in GDP?What caution is needed while interpreting a rise in disaster-repair spending in GDP?What problem may occur if data from the informal sector is limited in GDP?Why is real GDP considered a better welfare indicator than nominal GDP?If GDP growth mainly comes from polluting industries, what conclusion should be drawn about welfare?If GDP rises but population grows faster than GDP, what will happen to per capita GDP?Why is leisure time not included in GDP even though it may increase welfare?Why is a free teaching service provided by a volunteer not included in GDP?