One limitation of using GDP as a welfare measure is that it:

CA Foundation · Business Economics · MTP · September 2026
One limitation of using GDP as a welfare measure is that it:
(A) A. accounts for intermediate goods
(B) B. records value of illegal activities
(C) C. ignores income distribution
(D) D. includes only final goods

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. ignores income distribution

Topics: Determination of National Income

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