Get the answer of: Is GNP a Measure of Society's Well-Being? GNP is a comprehensive indicator of the economy's output. However, it is an imperfect measure of society's well-being because it reveals nothing about three important factors: (1) The growth of leisure time—that is, the substantial reduction in the work week that has taken place during the past several decades. [...]
Read this article to learn about the eight major limitations of Gross National Product in Economics. 1. Economic Versus Social Values: National income and product figures measure the economic rather than the social value of production in terms of market prices of the different types of goods and services. But such prices of goods and services may not truly reflect [...]
Read this article to learn about the two possible solutions to over-estimation of GNP in an economy. GNP is the money value of all the final goods and services produced in an economy during a given period; it has to be seen that intermediate goods are excluded as their inclusion may amount to double counting resulting in an over-estimation of [...]