|What are the limitations of GNP as a measure of welfare?|
|1. Quality of life is not determined by it|
|2. Gender disparities are not indicated|
|3. If doesn't matter how the increase in wealth takes place whether by civilian demand or war.|
|Choose the correct one:|
A) Only 1
B) Only 2
C) Only 1 and 3
D) All 1, 2 and 3
Correct Answer: D
Solution :[d] Some Limitations of using GNP to Measure Development: Accurate data is hard to find/acquire, Currency rates vary on a daily basis and it is difficult to put an accurate value on goods, Subsistence industries and farming production do not enter the market economy and are therefore not measured. Per capita GNP hides the internal distribution of wealth in a country, GNP is always given in US$ (does not consider relative price of goods etc.), GNP reveals little if anything about quality of life and well-being.
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