Question

Which of the following explanations is a reason why Real GDP per Capital is NOT a good measure of social welfare? Select one: a. Real GDP per capita does not account for population growth b. Real GDP per Capita does not account for household activities like cooking at home c. Real GDP per capita does not account for the production of services d. Real GDP per capita is not as accurate as Real Gross National Product per Capita e. Real GDP per capita is not measured frequently enough

Answer 1

Anss option 6 is correct. The reason why Real GDP per capita is not a good measure of social welfare is that Real GDP per capita does not account for household activities like co cooking at home. Read Gop per capita emits hon-market activities (like household and domestic productions. For example, the household works finished by the full-time housewives, like cooking child care, cleaning etc., are to not paid en by the family. So they not included in the calculation of Real GDP per capita. are