Econ question reguarding Gross Domestic Product?

Question

Which of the following argues in favor of using Gross Domestic Product as a measure of economic well-being?


A. The larger the Gross Domestic Product, the more a country can afford to spend on education and health care.

B. Reducing environmental regulation would increase GDP.

C. The larger the Gross Domestic Product, the more equitable the distribution of income must be.

D. GDP excludes the value of leisure.

Answer 1

None, really.
'A' suggests that it is the case IF more is spent on edu. and health care. But no guarantee, in some countries the extra GDP has been spent on arms and or better lifestyles for the rich and powerful.
'B' tells how to increase GDP but this would reduce well being, as quality of life and health issues etc come into play.
'C' Increasing GDP will have NO influence on income distribution, just the amount to be distributed.
'D' actually suggests that GDP increasing may decrease wellbeing, especially if the increase comes at the cost of leisure time.

Doesn't answer your question in the way you wanted but I hope it helps.

Answer 2

GDP Definition Gross Domestic Product. The total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. The GDP report is released at 8:30 am EST on the last day of each quarter and reflects the previous quarter. Growth in GDP is what matters, and the U.S. GDP growth has historically averaged about 2.5-3% per year but with substantial deviations. Each initial GDP report will be revised twice before the final figure is settled upon: the "advance" report is followed by the "preliminary" report about a month later and a final report a month after that. Significant revisions to the advance number can cause additional ripples through the markets. The GDP numbers are reported in two forms: current dollar and constant dollar. Current dollar GDP is calculated using today's dollars and makes comparisons between time periods difficult because of the effects of inflation. Constant dollar GDP solves this problem by converting the current information into some standard era dollar, such as 1997 dollars. This process factors out the effects of inflation and allows easy comparisons between periods. It is important to differentiate Gross Domestic Product from Gross National Product (GNP). GDP includes only goods and services produced within the geographic boundaries of the U.S., regardless of the producer's nationality. GNP doesn't include goods and services produced by foreign producers, but does include goods and services produced by U.S. firms operating in foreign countries.

Answer 3

A - 'Can afford' and 'will spend' are opposites.

B is against GDP, no-one is for negative externalities in hurting nature.

C - Generally true. 1000 people making 50 grand is 50 million dollars. It's easier to get 1000 people making 50 grand than one person making 50 million.

D - Leisure is a measure of economic well being.