Question
Need a reply to the following post. Gross Domestic Product is total economic revenue that a country intakes over a span of time. One limitation
Need a reply to the following post.
Gross Domestic Product is total economic revenue that a country intakes over a span of time. One limitation of GDP is Underground Economy. The Underground Economy is defined as transactions of illegal goods and services. Between different nations, this makes up a great percentage of that country's economic output but by not being incorporated into their GDP, it falls as their limitation.
Environmental Abuse is another limitation that is described as damaging or causing harm to the environment. When an economy is less concerned about the environment, that means they are more interested or concerned with their own economy growth. Even if their growth requires damaging or harming the environment. In this case, there's reason for the damage to count towards their GDP.
More limitations are Non-Market Production and Increases in Product Quality. For Non-Product Production, manufactures are producing for their own private consumption. An example of this would be private farms that produce food. Being that this is for private use, there is no way to formally estimate its count towards that country's GDP.
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