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Which limitation appears when GDP excludes the value of free online knowledge content?

Answer and explanation

Correct answer: Consumer utility and knowledge benefits may be understated in measured output

GDP records production through market valuation, and a service with a zero posted price may have no directly observed sales value even when users receive substantial benefits. Free educational videos, articles or open-source knowledge can create utility, learning and productivity gains that are larger than the amount recorded in national accounts. This is a measurement limitation, not proof that GDP overstates all digital benefits. Hence C is correct; A, B and D make unjustified universal claims.

Related tags

Gdp LimitationDigital EconomyConsumer SurplusFree KnowledgeGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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