Discuss the limitations of GDP as a measurement
tool.
If the economy runs most efficiently when left on its own (Adam
Smith’s invisible hand), then why do we need government
involvement? Do you think government should be so heavily involved
in our economy?
What are the limitations to using GDP as a measurement
of how efficiently an economy is growing? Identify two recent
events that will likely distort how well the official measurement
of Gross Domestic Product represents the standard of living.
Explain how the event is considered, or not considered, in the
measurement. The two events must be from within the last 3
months.