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Class 11EconomicsNational Income and Related AggregatesGDP and WelfareMedium
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Why is ignoring leisure important as a limitation of GDP?

Answer and explanation

Correct answer: Because more output may reduce leisure and welfare may fall

GDP measures the market value of production, but it does not fully measure people’s quality of life or non-market benefits. An increase in output may require longer working hours, greater stress, or less time for rest and family. If leisure falls substantially, welfare may decline even while GDP rises. Thus, ignoring leisure limits GDP as a measure of economic well-being, making A correct.

Related tags

Gdp LimitationsLeisureEconomic WelfareQuality Of LifeGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq
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10 more MCQs
  1. 1Measurement of economic growth in macroeconomics is generally linked with which of the following?
  2. 2What is a possible limitation of per capita income as an indicator of economic welfare?
  3. 3Why is the idea of income distribution linked with national income in macroeconomics?
  4. 4If the government wants to increase aggregate demand by reducing taxes, which macroeconomic idea is involved?
  5. 5If inflation and unemployment both rise, why is this a complex situation in macroeconomic study?
  6. 6Why are income, output and expenditure studied together in national income accounting?
  7. 7If aggregate demand rises but the economy is at full capacity, why may pressure come on prices?
  8. 8If total output is constant but the population is rising, what may macroeconomic analysis focus on?
  9. 9If total output rises but environmental damage also rises, which limitation of a macroeconomic measure is shown?
  10. 10What can be a limitation of national income data in macroeconomics?
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