Limitations of using GDP to compare welfare
measures growth of the production of goods and services for the
population. Therefore we usually see an increse in GDP as a good thing
for a country.
We need to be careful when looking at growth and what it tells us about an economy. Simply because a country appears to be getting wealthier does not actually mean that the people are better off.
Indeed, using national income figures, such as GDP, as measures of living standards may be inappropriate. An increase in real
GDP denotes an increase in the output of goods and services of the
economy, but does this necessarily lead to a corresponding increase in
welfare? You can think of welfare being to do with the quality of life while GDP is a quantitative measure.
Make a conclusion about using standard of living (Quantity) to measure Welfare (Quality)