Hamsterville and Gerbilia are two neighboring countries with identical populations and identical GDP.

Which of the following would most likely make Hamsterville better off than Gerbilia even if neither country's GDP changes?

Choose 1 answer:
(A) An increase in spending on healthcare in Hamsterville but not Gerbilia
(B) An increase in spending on education in Hamsterville but not Gerbilia
(c) An increase in life expectancy in Hamsterville but not Gerbilia
(D) An increase in the pollution in Hamsterville but not Gerbilia
(E) An increase in exports from Gerbilia to Hamsterville

Question

Hamsterville and Gerbilia are two neighboring countries with identical populations and identical GDP.

Which of the following would most likely make Hamsterville better off than Gerbilia even if neither country's GDP changes?

Choose 1 answer:
(A) An increase in spending on healthcare in Hamsterville but not Gerbilia
(B) An increase in spending on education in Hamsterville but not Gerbilia
(c) An increase in life expectancy in Hamsterville but not Gerbilia
(D) An increase in the pollution in Hamsterville but not Gerbilia
(E) An increase in exports from Gerbilia to Hamsterville

Accepted Answer

***C*** ∻Key Concept∻ ⚹Non-GDP Indicators of Well-being⚹ ∻Explanation∻ ⚹An increase in life expectancy generally indicates improvements in healthcare, quality of life, and overall well-being, which can make Hamsterville better off than Gerbilia despite having the same GDP.⚹◊What impact would an increase in spending on healthcare in Hamsterville have on the country's macroeconomic indicators compared to Gerbilia?⍭ Generate me a similar question◊

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