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Explain GDP and its welfare

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Explain GDP and its welfare

Posted by Chitransh Yadav 6 years, 2 months ago

CBSE > Class 12 > Economics

1 answers

Ayushi Khare 6 years, 1 month ago

Increase in gdp implies to increase in economic welfare but it is not the true indicator of economic welfare because 1 unequal distribution of gdp implies lesser welfare for poors 2 if the rise in gdp is results of rise in production of war materials than it implies less economic welfare 3 if rate of population growth is more than the rate of growth in gdp it decreases the per capita availability of goods 4 externalities 5 non monetory services increases the economic welfare but they are not counted in gdp

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