GDP is not a perfect measure of well-being; for example, a. GDP incorporates a large number of non-market goods and services that are of little value to society. b. GDP places too much emphasis on the value of leisure. c. GDP fails to account for the quality of the environment. d. All of the above are correct.

Question

Jacqueline Tyler

Business

21 June, 09:56

GDP is not a perfect measure of well-being; for example, a. GDP incorporates a large number of non-market goods and services that are of little value to society. b. GDP places too much emphasis on the value of leisure. c. GDP fails to account for the quality of the environment. d. All of the above are correct.

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Daniel Whitney · Answer 1

c. GDP fails to account for the quality of the environment.

Explanation:

Gross domestic product is defined as the sum total of all goods and services produced in a country within a specific time.

It measures the level of wealth in the economy. However it is not a true reflection of personal well being of the citizens of a country because it does not consider the quality of the environment in which people live.

GDP only measures. activities in the market place but does not evaluate other factors like leisure, quality of the environment, health levels, and education.