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Why is GDP not considered a complete measure of welfare?

Answer and explanation

Correct answer: It does not fully reflect income distribution and non-market factors

GDP measures the value of production, but it does not show how income is distributed and generally leaves out factors such as unpaid household work, leisure, and environmental quality. It is therefore useful for measuring output, but not a complete measure of welfare.

Related tags

GdpWelfareIncome DistributionNon-Market FactorsGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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