From the following find the statements related to GDP and the welfare of the economy

(A) The domestic services that women perform at home are considered in the calculation of GDP.

(B) Harmful effects caused due to carbon emissions from factory production are not counted as GDP.

(C) The rise in GDP may be concentrated in the hands of very few individuals or firms.

(D) Higher levels of GDP always ensure higher welfare.

Choose the correct answer from the options given below:

Option 1 -> Correctly identifies that only statements (B) and (C) are true about GDP and welfare.

Option 2 -> Incorrect because statement (A) is false - unpaid domestic work is not included in GDP calculations.

Option 3 -> Incorrect because both statements (A) and (D) are false.

Option 4 -> Incorrect because both statements (A) and (D) are false.

Hence, Option 1: (B) and (C) only -> Statement (A) is FALSE: Unpaid household services are NOT counted in GDP as they are non-market transactions. Statement (B) is TRUE: GDP measures market production but ignores negative externalities like pollution and environmental damage. Statement (C) is TRUE: GDP is an aggregate measure and doesn't reflect income distribution; growth can be concentrated among few while leaving majority unaffected. Statement (D) is FALSE: Higher GDP doesn't guarantee higher welfare since GDP ignores inequality, environmental costs, and non-monetary quality of life factors. Therefore, only statements (B) and (C) correctly relate to GDP and welfare limitations. -> correct