Economic growth, as a yardstick of development, is fraught with problems because ______.
A) there are no precise indicators of economic growth
B) per capita income, used to measure economic growth, obscures income inequalities and value of non-monetary activities
C) it discounts the role of private enterprise
D) it is subject to manipulation by Western countries

Question

Quizplus · Accepted Answer

Per capita income, which is commonly used as a measure of economic growth, only provides a limited picture of actual living standards as it ignores income inequalities and non-monetary activities such as subsistence farming or non-paid household work. This makes it difficult to use economic growth as a definitive yardstick for development.

Economic Growth, as a Yardstick of Development, Is Fraught with Problems