Assertion A GDP is the correct measure of the improvement of welfare of the people Reason R Man...........

Economics (CUET) National Income Accounting

Assertion (A): GDP is the correct measure of the improvement of welfare of the people.

Reason (R): Many activities in an economy are not evaluated in monetary terms, they are not included in GDP due to non-availability of data.

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).

Assertion (A) is true, but Reason (R) is false.

Assertion (A) is false, but Reason (R) is true.

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Explanation:

Option (4) is correct.
Explanation: There are certain limitations of GDP as an index of welfare:
(1) GDP does not take into account changes in inequalities in the distribution of income.
(2) GDP does not include non-monetary exchanges.
(3) GDP does not consider the changes in the population of a country.
(4) GDP does not account for valuation of externalities.