Question

the gdp of the country sumeria has grown at an average rate of 6 percent over the last two years, while the rate of inflation has remained more or less stable. macroeconomists in the country are arguing that this increase in gdp is a clear indication of an overall improvement in the well - being of its people. which of the following, if true about the last two years in sumeria, would strengthen this argument? a. an increasing percentage of the population is choosing leisure time over time spent in the work force. b. higher interest rates in other countries are inducing sumerians to invest abroad. c. the working conditions in many of sumerias manufacturing industries have failed to meet generally - accepted standards. d. most of sumerias industries have not followed environment - friendly processes. e. a population explosion in sumeria has lowered per capita gdp.

Explanation:

• Option A: If people are choosing leisure over work but GDP is still growing, it implies that productivity is high. High productivity can lead to better well - being as people can have more leisure while still having economic growth.
• Option B: Investing abroad does not directly relate to the well - being of the people in Sumeria based on the GDP growth argument.
• Option C: Poor working conditions in manufacturing industries suggest a negative aspect and do not strengthen the argument that GDP growth means overall well - being improvement.
• Option D: Non - environment - friendly processes are a negative and do not support the claim of well - being improvement.
• Option E: Lowered per capita GDP due to population explosion weakens the argument as it shows that the growth may not be beneficial on a per - person basis.

Answer:

A. An increasing percentage of the population is choosing leisure time over time spent in the work force.