Question

Using real GDP to compare the level of economic well-being in two countries may be misleading because the value of ______ contributes to economic well-being, but is excluded from real GDP.
a. capital goods
b. services
c. leisure
d. formal education

Answer 1

Answer:

The correct answer is letter "C": leisure.

Explanation:

In Business, leisure can be defined as the time people spend when they are not working or engaged in economic activities. With no doubt, the time people spend off work determines how they can perceive their well-being. Though, as the Gross Domestic Product (GDP) of a country is considered to measure people's well being but as the GDP does not include leisure, the GDP source might not be the most accurate for that purpose.