“Gross Domestic Product (GDP) does not give us a clear indication of economic welfare of a country.” Defend or refute the given statement with valid reason.
Solution:
GDP is not gave a clear indication of economic welfare of a country -
Income pattern - The rise in GDP shows increase in income but that is not for increase in income for all. On the other hand there are majority of people who have less income.
Non- monetary exchange- GDP does not consider the non monetary factor like education, welfare etc. thus GDP cannot be regarded as economic welfare indicator.
GDP is not gave a clear indication of economic welfare of a country -
Income pattern - The rise in GDP shows increase in income but that is not for increase in income for all. On the other hand there are majority of people who have less income.
Non- monetary exchange- GDP does not consider the non monetary factor like education, welfare etc. thus GDP cannot be regarded as economic welfare indicator.