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Bond [772]
3 years ago
14

Pollution caused by candles isn't taken into account.Quality improvements as a source of well-being are ignored.GDP doesn't capt

ure the soothing effect of candlelight.The marginal cost of light is zero, and by convention zero-priced goods and services areexcluded from GDP.Professor Nordhaus' light example in the Economist article "The trouble with GDP"highlights a major shortcoming of GDP as a measure of welfare. Which of the answersbelow best captures the essence of his argument?
A. Pollution caused by candles ian't taken into account .
B. Quality improvements as a source of well-being are ignored.
C. GDP doesn't capture the aoothing effect of candlelight . D. The marginal cost of light is zero, and by convention zero-priced goods and services are excluded from GDP
Business
1 answer:
hammer [34]3 years ago
3 0

Answer:

D. The marginal cost of light is zero, and by convention zero-priced goods and services are excluded from GDP

Explanation:

Only things that have a monetary cost are included in GDP. Things that do not cost "anything" in monetary terms are not included, and this is a major shortcoming of GDP.

From an ecological economics standpoint, things like sunlight, air, and water are often not valued and included in GDP. This is the same case as in the question, because the marginal cost of light is zero, then, it is not included in GDP.

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5 0
3 years ago
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gavmur [86]

Answer:

D. Equivalent units of production

Explanation:

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7 0
3 years ago
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IrinaK [193]

Answer:

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Explanation:

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According the referred application 3 of the book, it is true that the people of United States have become less happy despite the real GDP rise over the last 30 years. This is because the growth of real GDP is not able to cope up simultaneously with the increased workplace stress, jeopardized married life, traffic congestion, health problems and deterioration of environment.

In conclusion, it can be stated that Money does play an important role in increasing the happiness. However the factor alone is not able to cope up with all the problems and this is true only when all the other factors such as a conducive working environment, happy married life, healthy life are also accompanying more money.

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Answer:

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Explanation:

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