A higher GDP may not mean higher welfare because

GDP counts only government spendingCorrect answerYour answerthe gains may go to only a few peopleCorrect answerYour answerGDP is measured in dollarsCorrect answerYour answerGDP includes transfer paymentsCorrect answerYour answer

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CorrectNot quiteAnswer B

Correct answer: B

GDP is a total; it says nothing about how income is shared.

Concept: Distribution of GDP
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsGDP and welfare

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Ten questions from National Income Aggregates & GDP, at your own pace.

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Ten questions from National Income Aggregates & GDP, at your own pace.

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A higher GDP may not mean higher welfare because

Explanation