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What is the limitations of welfare and GDP

Posted by Krati Bhandari 1 year, 5 months ago

MP Board > Class 12 > Economics

1 answers

Preeti Dabral 1 year, 9 months ago

GDP ignores the welfare component as the goods and services produced may or may not add to the welfare to a society. For example, the production of goods, like guns, narcotic drugs, high-end luxurious goods increase the monetary value of production, but they do not add to the welfare of the majority of population.

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MP Board > Class 12 > Economics