The main reason GDP may not reflect living standards is its inability to:

CA Foundation · Business Economics · MTP · September 2026
The main reason GDP may not reflect living standards is its inability to:
(A) A. measure output
(B) B. capture non-market activities
(C) C. include all finished goods
(D) D. reflect total factor cost

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. capture non-market activities

Topics: Determination of National Income

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