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Limitations of GDP as a Measure of Societal Well-being Quiz

#1

How does GDP fail to capture the quality of life in a society?

It considers only material wealth.
Explanation

GDP overlooks non-material aspects such as leisure time and social connections.

#2

In what way does GDP fail to consider the value of leisure time?

It disregards the importance of leisure for well-being.
Explanation

GDP does not account for the subjective value of leisure time in individuals' lives.

#3

What is one limitation of using GDP as a measure of happiness and life satisfaction?

GDP doesn't consider the role of social relationships.
Explanation

GDP overlooks the importance of social connections in determining happiness and life satisfaction.

#4

Which dimension of well-being does GDP often overlook?

Social relationships
Explanation

GDP tends to ignore the impact of social relationships on overall well-being.

#5

In what way does GDP fail to account for the value of leisure time?

It disregards the importance of leisure for well-being.
Explanation

GDP does not incorporate the value individuals place on leisure activities when assessing overall well-being.

#6

What is one limitation of using GDP as a measure of societal well-being?

GDP includes only monetary transactions.
Explanation

GDP disregards non-monetary aspects like health and education.

#7

Which factor is not considered in GDP calculations?

Environmental sustainability
Explanation

GDP neglects environmental impact and sustainability.

#8

Which component of GDP often leads to environmental degradation?

Consumer spending
Explanation

Consumer spending fuels resource depletion and pollution, harming the environment.

#9

What does GDP not consider when assessing the well-being of a population?

Crime rates
Explanation

GDP overlooks social factors like crime rates, which impact citizens' well-being.

#10

Why is GDP considered an imperfect measure of a country's economic performance?

It neglects non-market activities.
Explanation

GDP fails to capture contributions from non-market activities, distorting economic performance metrics.

#11

Why does GDP fail to account for informal or black market activities?

They are difficult to measure and track.
Explanation

GDP struggles to quantify illicit transactions.

#12

Which of the following is a social factor not considered by GDP?

Life expectancy
Explanation

GDP omits indicators of societal health and well-being like life expectancy.

#13

Why is GDP criticized for not reflecting income inequality?

It only considers the average income.
Explanation

GDP's focus on average income masks disparities in wealth distribution.

#14

Which factor is often overemphasized by GDP in assessing societal well-being?

Economic growth
Explanation

GDP prioritizes economic growth over other indicators of societal well-being.

#15

Which of the following is an example of an externality that GDP might not capture?

Pollution from industrial production
Explanation

GDP often overlooks negative externalities like pollution, which impact societal well-being.

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