limitations of national income?

a. Population levels: Countries with small populations may not produce in the same way as countries whit larger populations although they have the same resources or level of income. The country with a low level population would have a lower “level of well- being” than the country with a high level of population.
b. The distribution of income: GDP data give the information on the average level of income. If there is an income disparity, it would not be reflected in the “level of well- being” of the country.
c. The amount of production that takes place outside of markets: GDP data only includes economic activity that enters the market place so if you work at your house, or as voluntary in a community project, this is not reported, so it would not be included in the GDP data. Therefore, the GDP data will measure only market activity and underestimate the “level of well-being” in that economy.
d. The length of the average workweek: When people work less, GDP levels will be lower.
e. The level of environmental pollution: A high-level of environment pollution would have a really impact on the well-being of any country. A country with a lower level of environment pollution would be better than a country with high level of environmental pollution. If the country has a lower GDP and less environmental pollution, this country may be better than the country with a higher GDP and a high environmental pollution.