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Which comparison is especially affected because GDP excludes the value of leisure time?

Answer and explanation

Correct answer: Comparing countries with equal output but different average working hours

GDP does not assign a market value to leisure time. Countries with equal output may have very different average working hours, and people may value the extra free time in one country. A comparison based on GDP alone can therefore miss an important difference in welfare. A is correct.

Related tags

Leisure TimeGdp LimitationsGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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