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Why is GDP not considered a complete measure of welfare?

Answer and explanation

Correct answer: Because it does not fully show distribution and non-market activities

GDP measures the monetary value of current market production, but welfare also depends on factors such as income distribution, leisure, health, safety, environmental quality, and unpaid household work. A higher GDP can therefore coexist with inequality or serious social and environmental costs.

Related tags

EconomicsGdpWelfareIncome DistributionNon-Market ActivitiesGdp And WelfareNational Income And Related AggregatesClass 11 Mcq

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