Introduction to Economics 2 Deneme Sınavı Sorusu #349489
Which of the following is not the limitation of GDP usage?
GDP includes the leisure activities into the calculation.
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GDP doesn’t provide detailed information about the distribution of income created in the country.
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GDP doesn’t reflect some social costs originated from production of goods and services.
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GDP doesn’t take the quality changes of produced goods into account.
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There are many activities need to be added to GDP in principle. |
There are some limits in usage of GDP and the concepts based on it is crucial for national income analysis. There are at least 6 points unfavorable with these figures should always be kept in mind. First, GDP and other income concepts based on it do not make sense if the population of the country in question is unknown. Second, GDP and other income concepts exclude the most valuable activity for an individual: leisure. Third, GDP and other income concepts do not take the quality changes of produced goods into account. GDP doesn’t provide detailed information about the combination and distribution of income created in the country. Fifth, GDP and other income concepts do not reflect some social costs originated from production of goods and services. Sixth, there are many activities need to be added to GDP in principle but not included actually. For example, illegal activities are not included into GDP calculations unless they are ‘acquitted’ by being introduced into legal system.
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