ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Household productions are not included in GDP
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Health and life expectancy is not considered in GDP
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Leisure time is not measured in GDP
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Marketable transactions are not accounted in GDP
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Detailed explanation-1: -GDP does not consider capital depreciation is not a limitation of GDP.
Detailed explanation-2: -GDP ignores the welfare component as the goods and services produced may or may not add to the welfare to a society. For example, the production of goods, like guns, narcotic drugs, high-end luxurious goods increase the monetary value of production, but they do not add to the welfare of the majority of population.
Detailed explanation-3: -The dollar value of total output is equal to the total monetary value of all [blank] goods and services produced. Which of the following statements is not true about the use of GDP as a measure of national welfare? GDP is a useful measure of national welfare since it excludes nonmarket transactions.
Detailed explanation-4: -However, gross domestic product (GDP) does not include the profits of domestic companies operating abroad, which is one of the limitations of GDP.