GDP is not an appropriate indicator of welfare because of ........

Economics (CUET) National Income Accounting

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GDP is not an appropriate indicator of welfare because of:

Externalities.

Composition of GDP and distribution of GDP

Non-monetary transactions.

All of the above.

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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.