GDP per head may be an imperfect measure of economic welfare because it excludes ?
Correct answer: E. All of the above
- A. the value of leisure
- B. Externalities
- C. Untraded goods
- D. Change in the distribution of income
- E. All of the above
Explanation
GDP per head records market production but omits or poorly reflects leisure, external costs and benefits, non-market or untraded goods, and income distribution. Therefore all the listed limitations apply.
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