Identify a limitation of using gross domestic product as a measure development.

Answer 1

One significant limitation of using Gross Domestic Product (GDP) as a measure of development is that it does not account for income inequality within a country. While GDP provides a broad indication of economic activity and output, it does not reflect how wealth is distributed among the population. A country could have a high GDP with significant disparities in income, meaning that the benefits of economic growth might not be experienced by all segments of society. This limitation makes GDP an incomplete measure of overall well-being and quality of life, as it fails to capture issues such as poverty rates, access to education and healthcare, and overall living standards.