Answer :
Real GDP per capita is an imperfect measure of the quality of life in part because it includes expenditures on natural disasters.
The correct option is C.
Real GDP includes some disaster-producing costs, such natural disaster costs. This statistic also accounts for spending related to natural disasters because real GDP per capita is calculated.
What is natural disasters?
In the case that a natural danger really occurs and seriously damages a community, it is called a natural disaster. A natural disaster often leaves behind some economic harm in addition to the loss of lives or damage to property.
What is Real GDP?
A macroeconomic indicator representing the value of economic output that has been modified for price fluctuations is the real gross domestic product. This modification converts the nominal GDP, a measure of economic worth, into an index for the amount of total output.
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I understand that the question you are looking for is:
Real GDP per capita is an imperfect measure of the quality of life in part because it.
A. includes the value of leisure time.
B. excludes expenditures on education.
C. includes expenditures on natural disasters.
D. excludes expenditures on entertainment.
E. includes the value of housework.