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Why is GDP called an incomplete measure of welfare?

Answer and explanation

Correct answer: Because it does not measure all social and environmental aspects

GDP is a useful measure of market production, but welfare is broader than the value of marketed output. GDP may not adequately show income distribution, unpaid household work, leisure, health, safety, environmental quality, or the enjoyment of public goods. Hence option B is correct. The other options wrongly say GDP measures no production, only population, or is always negative.

Related tags

Gdp LimitationSocial WelfareEnvironmentGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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