Which of the following is a limitation of using gross domestic product (GDP) to measure economic development?(1 point)
Responses
It overlooks economic growth.
It overlooks economic growth.
It exaggerates the role of health.
It exaggerates the role of health.
It ignores distribution of wealth.
It ignores distribution of wealth.
It overemphasizes population.
1 answer
The correct response is:
It ignores distribution of wealth.
GDP measures the total economic output of a country but does not account for how that wealth is distributed among the population. This means it can give a misleading picture of economic well-being and development, especially in cases where a small percentage of the population holds a large share of the wealth.
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