identify a limitation of using gross domestic product gdp

Answer 1

One of the primary limitations of using Gross Domestic Product (GDP) as an indicator of a country's economic health is that it does not account for income inequality within a population. While GDP measures the total economic output of a nation, it does not reflect how that wealth is distributed among its citizens. This means that a country could have a high GDP but also have significant income disparity, where the majority of wealth is concentrated among a small percentage of the population. As a result, GDP may provide an incomplete picture of the overall well-being and quality of life of its residents.