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

Question

Quizplus · Accepted Answer

GDP only measures market transactions, and therefore does not account for non-market production, such as volunteer work or household production. Additionally, GDP does not reflect the unequal distribution of income within a society, which can greatly impact economic welfare.

Even When Measured Accurately,GDP May Be a Misleading Measure of Economic