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Economists cite 5 problems with GDP as a measuring rod as follows: It does not count non-market production. It does not count the underground economy.

Economists cite 5 problems with GDP as a measuring rod as follows:

  1. It does not count non-market production.
  2. It does not count the underground economy.
  3. It makes no adjustment for leisure
  4. It probably understates output increases because of the problem of estimating improvements in the quality of products.
  5. It does not adjust for harmful side effects.

Take one of the problems and give a detailed description/example of an instance(s) where it is/was a

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