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 : Microeconomics concepts as a primary

Write a 3 page paper using microeconomics concepts as a primary mode of analysis. Your paper should use 1.5 line spacing, a 12 point font, and 1inch margins. Proof read your paper. You will lose 5 percentage points per day for each day past the

Q : Meaning of SWOT Analysis SWOT Analysis

SWOT Analysis: SWOT analysis is a powerful tool to know the strengths, weaknesses, opportunities and threats for any company. The company itself does SWOT analysis so as to know where they are standing vis-a-vis their competitors and what are the area

Q : Nations wealth Adam Smith disputed that

Adam Smith disputed that a nation’s wealth is, not the gold it possesses, but instead its: (1) Total population. (2) Capability to offer goods for its people. (3) Domestic financial capital. (4) Foreign investments. (5) Military might.

Q : Illustration of equal marginal advantage

Can someone please help me in finding out the accurate answer from the following question. Shoppers who shift among checkout lanes until it emerges that all register lines are probable to be equally time-consuming are trying to verify to the law of: (i) Equivalent mar

Q : Explain Product Market Equilibrium. To

To begin with, let us recall our three-sector product-market equilibrium model given as C + I + G = C + S + TTo this three-sector model, we now add the foreign trade-the exports (X) and imports

Q : Problem on full employment level of

What happens when AD > AS past to full employment level of employment?

Q : How prices allocate resources How

How prices allocate resources?

Q : Difficulty of scarcity People in whole

People in whole the world confront the difficulty of scarcity at always because: (i) restricted resources and times preclude producing all the goods people need. (ii) greedy capitalist monopolies charge excessively high prices. (iii) international mar

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 : Market experiencing a rise in demand

When equilibrium moves from point a to point b in the figure shown below, the only market experiencing a rise in demand is illustrated in: (1) Panel A. (2) Panel B. (3) Panel C. (4) Panel D.

Discover Q & A

Leading Solution Library

Avail More Than 1417969 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1938716
Asked

3,689

Active Tutors

1417969

Questions
Answered

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

Submit Assignment