Limitations of GDP Quiz

What is one use of GDP as an economic indicator?

• Analyzing shadow economy

• Tracking changes in population

• Measuring overall economic performance

• Comparing environmental situations

What does GDP reflect?

• The environmental impact of production

• The amount of goods and services produced in the economy

• The population of the country

• The level of income inequality

What is GDP per capita used for?

• Analyzing shadow economy

• Tracking changes in population

• Comparing environmental policies

• Measuring the standard of living

What is a limitation of using GDP per capita as a measure of standard of living?

• Inaccurate picture of the standard of living

• Environmental pollution during production

• High inequality in income distribution

• Corruption and harsh social conditions

What does the Human Development Index measure?

• Overall standard of living

• GDP per capita

• Population growth rate

• Environmental impact of production

What is a limitation of using GDP to measure the standard of living?

• Corruption and harsh social conditions

• Environmental pollution during production

• Population growth rate

• Inequality in income distribution

What is an example of the shadow economy?

• Population growth rate

• High GDP per capita

• Environmental pollution

• Black market

What does the shadow economy involve?

• Production of items not reported in GDP

• Environmental pollution during production

• High inequality in income distribution

• Corruption and harsh social conditions

What are external costs of production called?

• Human Development Index

• GDP per capita

• Population growth rate

• Externalities

What is a limitation of using GDP as a measure of the health of the economy?

• Various environmental situations

• Inequality in income distribution

• Shadow economy

• Population growth rate