Is GDP a good measure of our economic well being? Explain.
Answer: I will say GDP is a imporant measure of economic activity of a country, but it is not a good measure of the economic well being. GDP is a very weak measure and narrow indicator to show the social progress of a economy, GDP only shows the economic activity growth of the country by taking into account the value of goods and services produced by an economy in a year. It can be case that GDP has increased sharply of a economy, but at the same time there is no much progress on the general improvement in the standard of living. You can also see GDP growing by 10%, but at the same time that economy has been facing issues of child labor, poverty and lack of education.
So in my opionion there should be more detailed and qualitative measure rather than GDP to measure economic well being.
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If money is used as a mechanism to hold purchasing power for a period of time it is functioning as a
A) unit of account. B) medium of exchange. C) store of value. D) standard of value.
Total expenditure in the United States is equal to consumption expenditure plus investment
A) plus government expenditure on goods and services plus imports of goods and services. B) minus government expenditure on goods and services minus imports of goods and services. C) plus government expenditure on goods and services plus exports of goods and services. D) plus government expenditure on goods and services plus exports of goods and services minus imports of goods and services. E) plus government expenditure on goods and services plus exports of goods and services plus imports of goods and services.
The above figure shows the marginal private benefit and marginal social cost of a college education. If society's external benefits from college graduates is $10,000 each, then the
A) marginal social cost curve lies $10,000 to the left of the private marginal benefit curve. B) marginal social cost curve lies $10,000 to the right of the private marginal benefit curve. C) marginal social benefit curve lies $10,000 below the private marginal benefit curve. D) marginal social benefit curve lies $10,000 above the private marginal benefit curve.
Can consumption efficiency be achieved even if the efficient product mix is not achieved?
What will be an ideal response?