Question

Real GDP​ ______. A. accurately measures leisure time and life expectancy comma but does not accurately measure the general healthaccurately measures leisure time and life expectancy, but does not accurately measure the general health of the populationof the population B. accurately measures household production comma but it does not accurately measure health and life expectancyaccurately measures household production, but it does not accurately measure health and life expectancy nothing C. accurately measures underground economic activity comma but does not accurately measure leisure timeaccurately measures underground economic activity, but does not accurately measure leisure time nothing D. does not accurately measure leisure time comma environment quality comma or political freedom and social justicedoes not accurately measure leisure time, environment quality, or political freedom and social justice

Answer 1

Answer:

B

Explanation:

Real GDP measure total economic output by an economy in a specific geographical boundary regardless of ownership of factors of production, within a year, ceteris paribus.

Real GDP is a good indicator but is not a perfect indicator as underground economy (private tuition whereby taxes and consumption of goods and services) are not accounted for.

Real GDP does not measure Non-Material standard of living like leisure hours, health and life expectancy... It needs other indicators.

Both B and D is a bit effy as:

For D, GDP does not even measure such Non-Material SOL

For B, GDP is not 100 percent accurate on measuring household production (local production? I believe there is no such phrasing as household production as by economics, household is involved in household spending, Contributing to Consumption expenditure in Aggregate Demand.) as there are other factors like presence of underground economy that is not accounted for.

However, B seems like the most accurate ans as it still measures national output.