GDP is not satisfactory measure of economic welfare because:
A) it excludes non-market activities.
B) it excludes externalities.
C) it excludes the black economy.
D) all the above.

Question

Quizplus · Accepted Answer

GDP does not account for non-market activities (like household work), externalities (both positive and negative impacts not reflected in market transactions), or the black economy (economic activities not reported to the government and therefore not taxed or included in official statistics), all of which are significant aspects of economic welfare.

GDP Is Not Satisfactory Measure of Economic Welfare Because