Question

What are shortcomings of using GDP to measure the standard of living? Select the correct answer below: GDP ignores all social aspects of life. GDP does not account for all kinds of work. GDP does not take into account environmental degradation. All of the above.

Answer 1

All of the above.

Step-by-step explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the expenditure approach is given as :

Consumption spending + Investment spending + Government Spending + Net Export

In this equation, there's no measure for accounting for pollution or environmental degradation, happiness, joy or good health.

Also, goods produced or services rendered that are not sold aren't included in GDP

I hope my answer helps you