The countries of Montrose and Bellaire have the same GDP. Each country only consumes two goods: fish tacos and air purifiers. It turns out that due to the way fish tacos are produced in Bellaire, there is a lot more air pollution in Bellaire than there is in Montrose. People in both countries like fish tacos, but really only put up with the air purifiers to clean up after making tacos.

Assume that people value fish tacos for the enjoyment of eating them. On the other hand, air purifiers don't bring anyone any enjoyment beyond cleaning up pollution.

The table below shows the national expenditures of each country:
\begin{tabular}{lll}
Good & Montrose Spending (in Billions of $\$$ ) & Bellaire spending (in Billions of \$) \
\hline Fish Tacos & $\$ 100$ & $\$ 50$ \
Air purifiers & $\$ 50$ & $\$ 100$ \
GDP & $\$ 150$ & $\$ 150$
\end{tabular}

Based on this information, what can we infer about the quality of life in these two countries?

Choose 1 answer:
(A) Montrose has a better quality of life than Bellaire because they spend more on tacos
(B) Bellaire has a better quality of life than Montrose because they spend more on air purifiers
(C) They have the same quality of life because GDP is the same
(D) They have the same quality of life because income distribution is the same
(E) We cannot infer anything about the quality of life in these countries based on this information
Report a problem

Question

The countries of Montrose and Bellaire have the same GDP. Each country only consumes two goods: fish tacos and air purifiers. It turns out that due to the way fish tacos are produced in Bellaire, there is a lot more air pollution in Bellaire than there is in Montrose. People in both countries like fish tacos, but really only put up with the air purifiers to clean up after making tacos.

Assume that people value fish tacos for the enjoyment of eating them. On the other hand, air purifiers don't bring anyone any enjoyment beyond cleaning up pollution.

The table below shows the national expenditures of each country:
\begin{tabular}{lll} 
Good & Montrose Spending (in Billions of $\$$ ) & Bellaire spending (in Billions of \$) \
\hline Fish Tacos & $\$ 100$ & $\$ 50$ \
Air purifiers & $\$ 50$ & $\$ 100$ \
GDP & $\$ 150$ & $\$ 150$
\end{tabular}

Based on this information, what can we infer about the quality of life in these two countries?

Choose 1 answer:
(A) Montrose has a better quality of life than Bellaire because they spend more on tacos
(B) Bellaire has a better quality of life than Montrose because they spend more on air purifiers
(C) They have the same quality of life because GDP is the same
(D) They have the same quality of life because income distribution is the same
(E) We cannot infer anything about the quality of life in these countries based on this information
Report a problem

Accepted Answer

***E*** ∻Key Concept∻ ⚹GDP and Quality of Life⚹ ∻Explanation∻ ⚹GDP measures the total value of goods and services produced, but it does not account for environmental factors, distribution of income, or the actual well-being of residents. Therefore, we cannot infer the quality of life in Montrose or Bellaire based solely on GDP and spending patterns on fish tacos and air purifiers.⚹◊What impact does pollution from the production of goods have on the quality of life in a country according to macroeconomic principles?⍭ Generate me a similar question◊

Sia