What problems are generally encountered in calculating GDP? State the problems in details (Dec’13).

Q. What problems are generally encountered in calculating GDP? State the problems in details (Dec’13).

Or. Limitations of GDP

The major limitations of GDP: The GDP fails to measure or express changes in a nation's:

a)    Income distribution

b)    Quality of life

c)     Unpaid labour

d)    Intangible valuables (e.g. feeling secure)

e)     Real Savings

f)       Standard of Living

g)     Uneven inflationary price changes (e.g. a housing bubble)

h)    Transactions on the Black-market