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If GDP rises because people work longer hours but leisure decreases, which limitation of GDP is demonstrated?

Answer and explanation

Correct answer: Ignoring leisure and quality of life

GDP measures the market value of final goods and services produced, but it does not directly measure leisure, happiness, stress, or the distribution of income. Longer working hours may increase recorded output while reducing rest and personal time. Therefore, GDP growth alone cannot provide a complete picture of welfare or quality of life; ignoring leisure is an important limitation of using GDP as a welfare indicator.

Related tags

Gdp LimitationLeisureWelfareQuality Of LifeGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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