Many economists argue that real GDP is not a good measure of economic well-being because
A) it overvalues the increases in nonmarket transactions.
B) it excludes Social Security payments made to retirees.
C) it includes the taxes we pay to the federal government.
D) it excludes the environmental quality of life.

Question

Quizplus · Accepted Answer

Real GDP does not take into account the quality of life, including environmental factors such as pollution and natural resource depletion. Therefore, it is argued that real GDP alone cannot fully capture the economic well-being of a nation.

Many Economists Argue That Real GDP Is Not a Good