Which example BEST illustrates that GDP (gross domestic product) is not always a good indicator of economic health?
A) The GDP falls when consumer spending declines.
B) Money spent repairing hurricane damage helps raise the GDP.
C) Goods produced for infrastructure projects help raise the GDP.
Eliminate
D) The GDP falls because scarcity of materials slows the rate of production.

Question

acrozyx acrozyx

19-02-2020
Social Studies

contestada

Which example BEST illustrates that GDP (gross domestic product) is not always a good indicator of economic health?
A) The GDP falls when consumer spending declines.
B) Money spent repairing hurricane damage helps raise the GDP.
C) Goods produced for infrastructure projects help raise the GDP.
Eliminate
D) The GDP falls because scarcity of materials slows the rate of production.

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ShyzaSling ShyzaSling · Answer 1 · 2020-02-25T11:31:36+01:00

Answer:

The correct option is B) Money spent repairing hurricane damage helps raise the GDP.

Explanation:

Gross Domestic Product (GDP) can be described as the value of all the goods that are produced by a certain country in a certain amount of time.

A country or place which has recently encountered heave damage due to a hurricane will not be in a good economic health but the money spent on repairing the damages will help to raise the Gross Domestic Product (GDP).