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Which option correctly shows a limitation of GDP?

Answer and explanation

Correct answer: GDP does not show income distribution

GDP measures the market value of final goods and services produced within an economy, but it does not show how the resulting income is distributed among households. A country may have a high GDP while a large share of income goes to a small group. Consequently, GDP alone cannot fully describe equality, poverty, or overall economic welfare. Option A states this limitation correctly.

Related tags

GdpWelfareIncome DistributionLimitations Of GdpGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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