Many people, governments and economists think GDP is a very imperfect measure of wellbeing (or

social welfare). For this reason, many have tried to develop alternative measures of wellbeing using

additional variables other than income. What are the main problems of these alternative measures?

They are useless; GDP measures income well; income is the main determinant of living standards,

especially in developing countries.

We do not know what additional variables include in these alternative measures.

We do not how to aggregate the additional variables to generate a single number (like GDP)

telling us whether our well being today is lower or higher than yesterday

The additional variables are poorly measured while GDP is perfectly measured.

Select the best option