GDP may not be an appropriate index of welfare of the people. how? explain.

Yes,GDP is not an appropriate index of welfare because;
1. GDP does not include externalities like,factor income from abroad.
2. GDP just quantify all the goods and services but ignore quality.
3. It does not include transfer income/payment which contribute alot in GDP
4. It does not include household works which are an essential part of welfare.

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GDP does not include factors like literacy rate and life expectancy which tell us about the welfare of the people. Hence, Human Development Index would be a better index for showing the welfare of the people.
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