Gross domestic product (GDP) is not a perfect measure of welfare because it:
a. treats a dollar spent on guns the same as a dollar spent on education.
b. treats a dollar spent on exports the same as a dollar spent on imports.
c. double counts the value of leisure time

d. double counts depreciation.
e. counts illegal activities in the underground economy.

a

Economics

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The value of a dollar

A) is its face value. B) is set by the government. C) is its purchasing power. D) remains constant over time.

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Technological change will

A) shift the per-worker production function down. B) move the economy to a point beneath the per-worker production function. C) shift the per-worker production function up. D) move the economy along a given per-worker production function.

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