GDP is not a perfect measure of social welfare and the society's economic well- being because:

Question

Quizplus · Accepted Answer

GDP does not include all economic activities in the economy, such as non-market activities like household work. It also does not say anything about the distribution of income or the fairness of that distribution. Lastly, GDP accounting rules do not adjust for negative spillovers, such as pollution or resource depletion, which can affect the well-being of society.

GDP Is Not a Perfect Measure of Social Welfare and the Society's