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# Economist: Economists have long argued over the best way to measure

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Senior Manager
Joined: 22 Feb 2018
Posts: 446
Economist: Economists have long argued over the best way to measure  [#permalink]

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17 Nov 2019, 05:37
1
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Difficulty:

65% (hard)

Question Stats:

59% (02:37) correct 41% (02:37) wrong based on 101 sessions

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Economist: Economists have long argued over the best way to measure the net wealth of a nation's economy. On one side are those that favor the use of Gross Domestic Product, or GDP, the market value of all goods and services produced within the borders of a country within one year. On the other side are supporters of the use of the GNP, a similar measure that, unlike GDP, takes into account foreign assets that are owned by residents of a country. The debate over the accuracy of the GDP versus the GNP as a measure of net wealth continues, but in reality, the strong population bias associated with both statistics likely renders both inaccurate. In truth, per-capita GDP offers the clearest picture, as it divides the total wealth by the number of individuals, which tells us the mean income and average wealth and lifestyle of a nation's people. The difference between GDP / GNP and per-capita GDP is stark. According to the former measures, China has recently overtaken Japan as the second wealthiest country. If we look at per-capita GDP, however, Japan, China, and even the United States do not make the top ten, while small wealthy nations like Denmark, Switzerland, and Luxembourg routinely rank higher.

In the economist's argument, the two highlighted portions play which of the following roles?

A. The first introduces one side of a dichotomy; the second offers a concrete example of the dichotomy.
B. The first expresses an opinion about one perspective on a dichotomy; the second describes premise undermining the dichotomy itself.
C. The first describes a general topic; the second offers an example of an alternative approach to that topic.
D. The first is a common argument about a subject; the second is the author's conclusion.
E. The first identifies one side of a dichotomy; the second offers an example showing a dichotomy to be false.
Intern
Joined: 02 Jun 2019
Posts: 33
GRE 1: Q167 V160
Re: Economist: Economists have long argued over the best way to measure  [#permalink]

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01 Dec 2019, 21:05
5
On one side are those that favor the use of Gross Domestic Product, or GDP, the market value of all goods and services produced within the borders of a country within one year - This statement describes one side of dichotomy (contrast)
Now, we are left with Option A and E

If we look at per-capita GDP, however, Japan, China, and even the United States do not make the top ten, while small wealthy nations like Denmark, Switzerland, and Luxembourg routinely rank higher. -This is an example supporting the other side of the contrast
Thus, E is the answer.
##### General Discussion
Intern
Joined: 13 Oct 2019
Posts: 7
Concentration: Technology, Finance
Re: Economist: Economists have long argued over the best way to measure  [#permalink]

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01 Dec 2019, 08:49
2
I'll take an attempt. The first statement is the hypothesis/claim. The second and third statements show two schools of thought (dichotomy). The next few statements are 'point of departure' or 'argument' and last two sentences are examples proving that argument. Hence, only the last answer option matches the types of statements.
Re: Economist: Economists have long argued over the best way to measure   [#permalink] 01 Dec 2019, 08:49
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# Economist: Economists have long argued over the best way to measure

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