Identify a limitation of using gross domestic product (GDP) as a measure for development.(1 point)
Responses
It doesn’t account for the value of services in the economy.
It doesn’t account for income distribution.
It overemphasizes environmental sustainability.
It overemphasizes health indictors such as life expectancy.
It doesn’t account for income distribution.
are you sure
Yes, I am sure. The correct answer is that GDP does not account for income distribution. GDP measures the total value of goods and services produced in a country, but it does not provide information about how that wealth is distributed among the population. Therefore, it is possible for a country to have a high GDP but still have significant income inequality and a lack of development for certain groups or regions within the country.
The correct response is: It doesn’t account for income distribution.
To identify this limitation of using GDP as a measure for development, we need to understand what GDP represents. GDP is a measure of the total value of goods and services produced within a country's borders in a specific time period.
GDP does not take into consideration how income is distributed within a country. It focuses solely on the total value of economic output without considering how that value is distributed among the population. This means that GDP does not provide information about the level of income inequality or the distribution of wealth within a country.
To identify this limitation, one would need knowledge of the definition and components of GDP, as well as an understanding of the concept of income distribution and how it relates to measuring development.