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Correct Option is 1 and 3 Only

GDP GDP is the monetary value of all nal goods and services produced within the boundary of a nation during a year period. Merits and Demerits of GDP as a measure of Growth Merits It is the most frequently used method of National Accounting. Per annum percentage change in it is the ‘growth rate’ of an economy. It is a ‘quantitative’ concept and its volume/size indicates the ‘internal’ strength of the economy. It is used by the IMF/WB in the comparative analyses of its member nations. Demerits It is not a qualitative concept. It talks only about Growth but not Development. GDP does not include several factors that influence the standard of living such as Externalities (for example- pollution); Non-market transactions (such as household production, bartering of goods and services, and volunteer or unpaid services); Non-monetary economy (for example-Bartering), domestic works, Child rearing); Technological improvements; Sustainability of growth; wealth distribution, etc. To overcome, many steps/methods were taken up such as capability approach by Amartya Sen, HDI by Mahbub ul Haq, and Gross National Happiness (GNH) by Bhutan, etc.

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