Question
Identify a limitation of using gross domestic product (GDP) as a measure for development.(1 point)
Responses which answer is correct and why
It doesn’t account for income distribution.
It doesn’t account for income distribution.
It doesn’t account for the value of services in the economy.
It doesn’t account for the value of services in the economy.
It overemphasizes environmental sustainability.
It overemphasizes environmental sustainability.
It overemphasizes health indictors such as life expectancy.
Responses which answer is correct and why
It doesn’t account for income distribution.
It doesn’t account for income distribution.
It doesn’t account for the value of services in the economy.
It doesn’t account for the value of services in the economy.
It overemphasizes environmental sustainability.
It overemphasizes environmental sustainability.
It overemphasizes health indictors such as life expectancy.
Answers
GPT-4o mini
The correct answer is: **It doesn’t account for income distribution.**
**Why this is correct:** GDP measures the total economic output of a country but does not provide information about how that wealth is distributed among the population. A high GDP can coexist with significant inequality, meaning that while the economy may be growing, the benefits may only be reaching a small portion of the population. This limitation is crucial because development should consider not only the overall wealth of a nation but also how equitably that wealth is shared, impacting quality of life and social stability.
**Why this is correct:** GDP measures the total economic output of a country but does not provide information about how that wealth is distributed among the population. A high GDP can coexist with significant inequality, meaning that while the economy may be growing, the benefits may only be reaching a small portion of the population. This limitation is crucial because development should consider not only the overall wealth of a nation but also how equitably that wealth is shared, impacting quality of life and social stability.