f) limits of using GDP

• how can GDP mean Lack of information provided on inequality?

  distribution of income in an economy is provided as an average (GDP/capita)

  differences in standard of living within the same country can be significant
• what are the limits of using GDP for Quality of goods/services?

  GDP provides no information on increase/decrease in the quality of goods/services over time

  • If quality worsens but prices are lower, then the standard of living is judged to have increased 
• how has poor quality of using GDP?

   may have decreased the standard of living
• limits of using GDP -Environmental factors ?

  GDP doesn't capture the environmental and health impacts of generating income within a country (externalities)

   

   fewer externalities in generating the income the standard of living would be higher

   
• how does limits of GDP include unpaid/voluntary work?

  If it included voluntary/unpaid work, then GDP/capita would be higher

  E.g. some economies have a high amount of family child care provision. This increases standards of living but is not recorded in any way