Even when measured accurately, GDP may be a misleading measure of economic welfare because it cannot account for
A)the value of non-market production and the consequences of an unequal distribution of income.
B)the value of government spending and how efficiently we produce goods and services.
C)the cost of intermediate goods and services.
D)the consequences of an unequal distribution of income and the value of government spending.
E)how efficiently we produce goods and services and the value of non-market production.

Question

Quizplus · Accepted Answer

GDP measures the total market value of all final goods and services produced in a country in a given period but fails to account for non-market production (like household work) and does not consider how income is distributed among the population. Both factors are crucial for assessing economic welfare.

Even When Measured Accurately, GDP May Be a Misleading Measure