Economics
GDP and Welfare
Practice questions
When reconstruction spending rises after a natural disaster, what welfare caution is needed regarding GDP?Why is GDP considered an incomplete indicator of economic welfare?Why is a paid domestic worker's wage included in GDP but a similar household service performed by a homemaker is not?If a country's GDP rises but its population rises faster, what may happen to per capita GDP?Ignoring environmental damage in GDP creates which problem?If the government gives an unemployment allowance, why is it not directly added to GDP?If reconstruction spending rises after a natural disaster, GDP may rise, but why may welfare not necessarily rise?Which statement is the most careful regarding GDP and welfare?GDP does not fully reflect the damage caused by over-exploitation of natural resources. Which limitation of GDP does this illustrate?If a country’s GDP rises but income distribution becomes highly unequal, which statement about welfare is correct?The issue of a free online educational video made and provided freely is related to what limitation in GDP measurement?Not including illegal gambling income in GDP is what kind of measurement limitation?In which example can GDP rise while social welfare may still decline?In which situation can GDP growth wrongly overstate growth in economic welfare?What main limitation is shown by generally excluding unpaid family labour from GDP?If real GDP rises by 5 percent and population rises by 7 percent, what is the likely effect on per capita real GDP?Why can income inequality be hidden in GDP?Which option is the correct criticism regarding GDP and the environment?Why is ignoring leisure important as a limitation of GDP?Which limitation is shown by not including unpaid household work in GDP?