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Limitations of using GDP to compare welfare

GDP 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 list of the reasons why an increase in GDP may not be to the benefit of the people in a country.

Make a conclusion about using standard of living (Quantity) to measure Welfare (Quality)