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.
Frequently asked questions
What is the correct answer to this question?
Because it does not measure all aspects of health, environment and income distribution
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
