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Choose the correct answer



1. The GDP per capita is designed to measure

· the quality of life

· the value of goods and services produced by the population of this country

· the total output of a country divided by the total number of people

· the amount of money that is being earned per person in a country

2. The author considers GDP per head to be an inaccurate measure of quality of life in a country because

· it takes no account of depreciation of capital goods

· it only captures material wealth but excludes some phenomena which have an

increasing impact on the well-being of citizens

· it is based on market prices.

· it is normally revised after a certain period of time.

3. It can be inferred that had there been more awareness of the limitations of standard metrics, like GDP,

· the financial crises and recession could have been avoided

· bankers and borrowers would have felt worse-off

· there would have been less euphoria over economic performance in the years prior to the crisis

· the policymakers would have taken early measure to moderate the melt-down

4. The key message of the report is that the time is ripe

· to dismiss GDP and production measures

· to shift emphasis from measuring economic production to measuring people’s well-being in the context of sustainability

· to focus on material living standards that are more closely associated with measures of real household income and consumption

· to ensure that statisticians are independent of governments

Exercise № 6.





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