GDP is an important indicator because it is used as a measure of all of the following except:
A) economic growth.
B) average living standards.
C) business-cycle fluctuations.
D) average income levels.
E) environmental quality.

Question

Quizplus · Accepted Answer

GDP is not an appropriate measure of environmental quality. It only measures economic activity and does not take into account external costs such as pollution or resource depletion. Other indicators such as the Environmental Performance Index or Genuine Progress Indicator are used to measure environmental quality.

GDP Is an Important Indicator Because It Is Used as a Measure