Question

what are the limitation of gdp as index of welfare​

Answer 1

Answer:

GDP(Gross Domestic Product) -  GDP measures the value of economic activity within a country.

• GDP is a number that expresses the worth of the output of a country in local currency.
• GDP is calculated for a specific period of time, usually a year or a quarter of a year.

However GDP has some limitations as Index Of Welfare.

Some of the major limitations of Gross Domestic Product are:

1. Exclusion of Non-Market Transactions.
2. GDP does not describe income distribution .
3. GDP does not incorporate any measures of welfare.