Question

1-Which of the following are ways GDP can overstate the standard of living?

Select the correct answer below:

Factors not included in the GDP, such as environmental cleanliness are getting better.

The GDP does not capture leisure and new technology, which have improved for Americans.

GDP ignores factors such as crime rates and income inequality.

GDP does not measure life expectancy and education levels, which have risen.

2-Which of the following statements is correct?

Select the correct answer below:

A clean environment has no impact on the standard of living in a country.

Higher spending on environmental protection always results in a cleaner environment and a healthier population, and thus a higher standard of living.

GDP includes spending on environmental protection, but it does not actually measure how effective that protection is.

None of the above.

Answer 1

a) "C"

GDP ignores factors such as crime rates and income inequality. that will decrease the standard of living but not accounting for it will overestimate the standards.

b) "C"

GDP includes spending on environmental protection, but it does not actually measure how effective that protection is.