GDP is not a perfect measure of well-being; for example, Question 2 options: GDP excludes the value of volunteer work. GDP does not address the distribution of income. GDP does not address environmental quality. All of the above are correct.

All of the above are correct.

Explanation:

GDP is a great Economic measure that shows just how well the Economy is performing.

Like every good thing though, it has its shortcomings.

Some of those are,

a) GDP excludes the value of volunteer work

GDP is counted only in terms of Market Transactions and outside that, it fails to account for non market activities such as Volunteerism.

b) GDP does not address the distribution of income

GDP cares only about the calculation of the size of the Economy and how much Income is in it. It does not however measure how that income is being distributed amongst the Economy.

c)GDP does not address environmental quality

Again, because GDP is only concerned with the market prices of things, it does not actually include the Quality of the Environment. Sure it includes how much is spent on the Environment but does not include actual levels of Environmental cleanliness and quality.

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