Which of the following is a limitation of using gross domestic product (GDP) to measure economic development? (1 point)

Question

• It exaggerates the role of health.
• It overlooks economic growth.
• It overemphasizes population.
• It ignores distribution of wealth.

Answer 1

The correct answer is: It ignores distribution of wealth.

GDP measures the total economic output of a country but does not take into account how that wealth is distributed among the population. A country could have a high GDP while a significant portion of the population still lives in poverty, which is a limitation when assessing overall economic development.