Limitations of using GDP as an index of welfare

What are the limitations of using GDP as an index of welfare of a country?

A) The N.I. figures provide no indication of the population, skill and resource of the country. Thus the levels of welfare stay low.

B) A higher N.I. might be due to bigger area or due to concentration of some resources in one specific country.

C) N.I. doesn’t consider the level of prices in country. People might be having high income however due to high prices they may not be able to benefit from a high standard of living.

D) High N.I. of a country might be due to big contributions made by few industries.

View Complete Question

Related Questions in Macroeconomics

Q : Use the principles of supply and demand

Use the principles of supply and demand to address a predetermined goal (set by the student) in the gasoline market. Be clear on what the current market indicates and why and what your future goal is.

Q : Federal fiscal stimulus in 2009

Question: Was the stimulus package passed in 2009 as success? In answering this question the focus should be the articles on the syllabus, but you should also include opinions of other commentators. &nbs

Q : IMF? In saying that the present system

In saying that the present system of floating exchange rates is managed we mean that: IMF officials determine exchange rates on a day-to-day basis. countries that allow their exchange rate to move freely will lose their borrowing privileges with the IMF. the value of any IMF member's currency

Q : Taxing imports-whats the problem ‘Must

‘Must a country which is less proficient at generating all goods use import controls to decrease imports from additional countries?’

Q : Value of fiscal deficit Evaluate the

Evaluate the value of fiscal deficit when primary deficit is 53,000 crores and interest on borrowings is Rs 5,000 crores?

Q : Policy proposals influencing market for

How would your policy proposals influence the market for parking?

Q : In which of these two statements

"In corn market, demand often exceeds supply and supply sometimes exceeds demand." "The price of corn rises and falls in response to changes in supply and demand."

Q : Market shift when exporting When the

When the U.S. furniture market is primarily in equilibrium at point e on S0D0 and then Chinese manufacturers start exporting more furniture to the United States, then this market would shift towards a new equilibrium at: (1) point a. (2) point b. (3) point c. (4) poin

Q : What is Equilibrium What do you mean by

What do you mean by the term Equilibrium? Also state its proper definition.

Q : Diminishing prices raising total revenue

Diminishing prices will raise total revenue from DVD game sales at each and every price: (1) On this demand curve. (2) Beneath $25. (3) Above $25. (4) Beneath $30.

Discover Q & A

Leading Solution Library

Avail More Than 1423922 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1922306
Asked

3,689

Active Tutors

1423922

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment