PRC-3 · Chapter 13 · Question 9 of 50
While GDP measures total output, it is often criticized as a flawed measure of a society's true 'standard of living'. Which of the following is a primary reason for this criticism?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) GDP fails to account for population size, income inequality, and environmental degradation
Explanation
A high GDP does not guarantee high living standards if the population is massive, the wealth is held by a few, or the production process destroys the environment.
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