Gross Domestic Product was designed as a measure of economic activity, specifically a measure of national
production. Despite this intent, GDP is widely interpreted as a measure of economic welfare or standard of living (when measured in per capita terms).
What are the shortcomings of using GDP as a measure of economic welfare? What would you like to add to (or subtract from) GDP to make it a better reflection of how well people are doing in a nation?
The shortcomings of using GDP are as follows 1: It only includes market transactions 2: It does not describe the output 3: It... View the full answer