Question

The growth of GDP may understate changes in the economy's economic well-being over time if the:

Answer 1

Answer:b) quality of products and services improves.

Explanation:GDP(GROSS DOMESTIC PRODUCT) is an economic term used to describe the total value of goods produced and services rendered within an economy over a given period of time.

GDP is a macroeconomic measure used by development agencies and economy managers to determine the performance of an economy.

GDP MAY UNDERESTIMATE THE CHANGES IN THE ECONOMIC WELLBEING OF A COUNTRY OVER TIME IF THE QUALITY OF PRODUCTS AND SERVICES IMPROVE,AS IT DOES NOT CONSIDER IT IN THE ESTIMATION.

Answer 2

Answer:

b) quality of products and services improves.

Explanation:

While the GDP is a useful measure to analyze the general health of an economy, it should not be assumed that this describes all the possible variables of a country's economy. For example, one thing that the GDP cannot measure is the quality of products and services. For example, a country without access to technology might have a high GDP, but even with this money, it is still impossible to buy items that can be bought in other countries. The same occurs with high-quality products or certain services.