Proportion of more defence goods as compared to consumption goods in GDP is a limitation of GDP as an index of welfare.
True of False with Reasons:
Proportion of more defence goods as compared to consumption goods in GDP is a limitation of GDP as an index of welfare.
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True,
Higher GDP will promote welfare only if increased output comprises of goods of mass consumption. Proportion of more defence goods (as compared to consumption goods) does not lead to any direct increase in the welfare of people.
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