Question

Despite some problems with equating GDP with economic well-being, real GDP per person does imply greater economic well-being because it tends to be positively associated with:

A. crime, pollution, and economic inequality. B. better education, health and life expectancy.
C. poverty, depletion of nonrenewable resources, and congestion. D. unemployment, availability of goods and services, and better education.

Answer 1

B

Explanation:

A positive relationship between two variables or quantities happens when both increase if one increases or both decrease if one decreases. In this case, the problem states that real GDP per person is positively associated with well-being, which means that if GDP increases then well-being increases too. For instance, we should look for variables that if they increase then the well-being increases too. It is not option A,C or D because if there is an increase in crime, poverty or unemployment, people´s well-being will decrease, so those variables are negatively associated with GDP. The answer is B because if there is better education, health and life expectancy, people´s well-being increases.