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Why is GDP not a complete measure of welfare?

Answer and explanation

Correct answer: Because it does not measure all aspects of health, environment and income distribution

GDP is a measure of the monetary value of market production, not a complete index of human well-being. It does not fully show health, environmental quality, unpaid work, leisure, safety or how income is distributed. Therefore, option C is correct. The other choices are false because GDP does measure production, is not limited to imports and is not always negative.

Related tags

Gdp LimitationsWelfareEnvironmentIncome DistributionGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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