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3 votes
List three of GDP's flaws as an economic indicator.

1 Answer

5 votes

Answer:

GDP ignores the welfare component as the goods and services produced may or may not add to the welfare to a society. For example, the production of goods, like guns, narcotic drugs, high-end luxurious goods increase the monetary value of production, but they do not add to the welfare of the majority of population.

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User Cliffhanger
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