Why is ignoring leisure important as a limitation of GDP?
Answer and explanation
Correct answer: Because more output may reduce leisure and welfare may fall
GDP measures the market value of production, but it does not fully measure people’s quality of life or non-market benefits. An increase in output may require longer working hours, greater stress, or less time for rest and family. If leisure falls substantially, welfare may decline even while GDP rises. Thus, ignoring leisure limits GDP as a measure of economic well-being, making A correct.
Frequently asked questions
What is the correct answer to this question?
Because more output may reduce leisure and welfare may fall
Why is this the correct answer?
GDP measures the market value of production, but it does not fully measure people’s quality of life or non-market benefits. An increase in output may require longer working hours, greater stress, or less time for rest and family. If leisure falls substantially, welfare may decline even while GDP rises. Thus, ignoring leisure limits GDP as a measure of economic well-being, making A correct.
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.
