A textbook excerpt emphasizes limitations of economic measures alone: GDP per capita can rise even when inequality increases, environmental costs worsen, or unpaid household labor is excluded. It cautions that averages can hide internal disparities. Which evaluation best reflects the excerpt's warning?
- GDP per capita directly measures inequality, so it cannot hide disparities within a country.
- GDP per capita is a complete measure of development because it includes unpaid labor and environmental quality.
- Economic averages may mask unequal outcomes, so additional social and distributional indicators are needed. (correct answer)
- Gender disparities are irrelevant to development measurement because GDP already accounts for women's unpaid work.
- The excerpt is describing the Gender Inequality Index as a measure of total national production.
Explanation: GDP per capita provides an average measure of economic output but has limitations, as it can mask rising inequality, environmental degradation, and the exclusion of unpaid work. The excerpt warns that averages like GDP per capita may hide internal disparities, suggesting the need for supplementary social and distributional indicators. This critique highlights why a multifaceted approach is essential for a fuller picture of development. Choice C best reflects this by stating that economic averages can obscure unequal outcomes, necessitating additional indicators. In comparison, A incorrectly says GDP directly measures inequality, and B falsely claims it includes unpaid labor and environmental quality. D and E either dismiss gender disparities or confuse GDP with the Gender Inequality Index.