Which of the following is a limitation of using GDP as a measure of economic well-being?

CA Foundation · Business Economics · MTP · May 2026
Which of the following is a limitation of using GDP as a measure of economic well-being?
(A) A. It includes only monetary transactions.
(B) B. It does not account for income distribution.
(C) C. It considers both market and non-market activities.
(D) D. It is not affected by inflation.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. It does not account for income distribution.

Topics: Determination of National Income

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