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Explain how ‘non-monetary exchanges’ are a limitation in taking GDP as an index of welfare.

      

Explain how ‘non-monetary exchanges’ are a limitation in taking GDP as an index of welfare.

  

Answers


marlyne
Non-monetary exchanges refer mainly to the own account or self consumed goods and services like services of family members to each other, which are left out of GDP on account of non availability of data. But these do contribute to welfare. As such, GDP under estimate welfare.

marlinbito answered the question on May 12, 2018 at 13:02


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