Question
I need some help figuringout an answer to this question: It is well recognized that Gross Domestic Product is not anaccurate measure of the standard of living or societal welfare. Describe some activities that are not included in GDPmeasure and how these omissions might impact the measure ofeconomic well-being. Thanks inadvance! I need some help figuringout an answer to this question: It is well recognized that Gross Domestic Product is not anaccurate measure of the standard of living or societal welfare. Describe some activities that are not included in GDPmeasure and how these omissions might impact the measure ofeconomic well-being. Thanks inadvance! It is well recognized that Gross Domestic Product is not anaccurate measure of the standard of living or societal welfare. Describe some activities that are not included in GDPmeasure and how these omissions might impact the measure ofeconomic well-being. Thanks inadvance!
Explanation / Answer
The following are shortcomings of the GDP Wealth Distribution - The GDP does not take the distributionof wealth into account. The actions of the rich affecting the GDPmay not be accurate. underground economy - GDP don't take into account tax evasionand illegal trade, which can cause underestimated GDP. Non-monetary economy - Once again, if money doesn't tradehands, not counted towards the GDP. Quality of Goods - By buying things from Walmart that breakeasily, rather than something of high-durability, the monetaryvalue of items sold causes the GDP to go up simply because waste ishigher, not atually the standard of living is increaseing. What is being produced -After a natural disaster or war, therebuilding increases economic activity and boost the GDP. If you want more examples, check out Gross Demestic Product onwikipedia, which is where this informaiton was taken from.