Which of the following is not a shortcoming of GDP as a measure of well-being? A. GDP is not adjusted for crime and other social problems. B. GDP does not include the value of leisure. C. GDP is not adjusted for the effects of pollution caused by the production of goods and services. D. GDP only counts final goods and services and not intermediate good

Question

Brenden Wagner

Business

17 August, 02:48

Which of the following is not a shortcoming of GDP as a measure of well-being? A. GDP is not adjusted for crime and other social problems. B. GDP does not include the value of leisure. C. GDP is not adjusted for the effects of pollution caused by the production of goods and services. D. GDP only counts final goods and services and not intermediate good

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Answers (1)

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Devan Brooks · Answer 1

D.

Explanation:

GDP (Gross domestic product), is a measure of a country's economic output that accounts for its number of people.

GDP is the value of the final goods and services produced.

A final good is an item bought by its final user during a specified time period. A final good contrast with an intermediate good, which is an item that is produced by one firm, bought by another firm, and used as a component of a final good or service.

Excluding intermediate goods and services avoids double counting.