Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It includes all household production.
B
It does not account for income inequality.
C
It measures environmental sustainability.
D
It reflects changes in population size.
Understanding the Answer
Let's break down why this is correct
Answer
One limitation of GDP as a measure of economic performance is that it does not account for household production or unpaid work. For example, if a parent stays home to care for their children instead of working for pay, their valuable contributions are not included in GDP calculations. This means that GDP might show economic growth while ignoring important activities that contribute to well-being and family life. Additionally, GDP does not consider how income is distributed among people, so it might not reflect the real economic situation for everyone. Therefore, while GDP is a useful tool, it doesn't give the full picture of a country's economic health.
Detailed Explanation
GDP does not show how wealth is shared among people. Other options are incorrect because Some might think GDP includes all home activities, but it actually ignores unpaid work like chores or caring for family; It's a common belief that GDP measures how we care for the environment, but it doesn't consider pollution or resource use.
Key Concepts
limitations of GDP
Topic
GDP Limitations and Household Production
Difficulty
easy level question
Cognitive Level
understand
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