Question
In which situation might GDP (gross domestic product) NOT be an accurate indicator of the health of a country's economy?
Responses
A The country is embarking on large public works projects.The country is embarking on large public works projects.
B The country has recently joined a new trade organization.The country has recently joined a new trade organization.
C The country relies on agriculture for most of its export revenues.The country relies on agriculture for most of its export revenues.
D The country has recently begun trading much more with a large trading partner.The country has recently begun trading much more with a large trading partner.
E The country has suffered a disaster and is receiving financial aid from overseas.
Responses
A The country is embarking on large public works projects.The country is embarking on large public works projects.
B The country has recently joined a new trade organization.The country has recently joined a new trade organization.
C The country relies on agriculture for most of its export revenues.The country relies on agriculture for most of its export revenues.
D The country has recently begun trading much more with a large trading partner.The country has recently begun trading much more with a large trading partner.
E The country has suffered a disaster and is receiving financial aid from overseas.
Answers
Answered by
GPT-4o mini
E. The country has suffered a disaster and is receiving financial aid from overseas.
In this situation, GDP may not accurately reflect the health of the country's economy. While financial aid can boost GDP figures in the short term, it doesn't necessarily indicate a sustainable or healthy economic condition. The underlying economic challenges caused by the disaster, such as damage to infrastructure, loss of productivity, and unemployment, might be serious and not adequately captured by GDP alone. Additionally, GDP does not account for the quality of life or economic well-being of individuals in the aftermath of such disasters.
In this situation, GDP may not accurately reflect the health of the country's economy. While financial aid can boost GDP figures in the short term, it doesn't necessarily indicate a sustainable or healthy economic condition. The underlying economic challenges caused by the disaster, such as damage to infrastructure, loss of productivity, and unemployment, might be serious and not adequately captured by GDP alone. Additionally, GDP does not account for the quality of life or economic well-being of individuals in the aftermath of such disasters.