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Each of the following cases applies to a country whose per capita real GDP has been steadily rising at 1 percent a year. In each
Each of the following cases applies to a country whose per capita real GDP has been steadily rising at 1 percent a year. In each case, does GDP overstate or understate the change in living standards?
a) The average amount of leisure time for workers has decretase.
b) The relative importante of the non-market sector has risen.
c) A larger proportion of the Economy's resources are devoted to recycling and the introduction of environmentally sustainable production techniques.
d) Incomes have become less equitably distribuited.
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