Question

In: Economics

Discuss the argument that GDP understates national well-being because there is not an allowance for people...

Discuss the argument that GDP understates national well-being because there is not an allowance for people working fewer hours than they once worked.

Solutions

Expert Solution

GDP is defined as Gross Domestic Product i.e. Sum of all goods and services produced within the boundaries of a nation in a financial year. However, GDP has its flaws as it fails to factor-in the well being of a nation.
1.GDP gets increased when the country faces earthquake and the rebuilding process is counted in GDP calculation. But a country is actually better off by not facing any earthquake. The absence of any devastation in a particular is not factored-in for GDP calculation, which seems unfair.
2.Secondly, GDP do not consider leisure hours. An employee working for 12 hours and another working for 8 hours with similar or even just a slight variation in productivity, the 12 working hours contribute more to GDP than 8 working hours even if the person working 8 hours has better work life balance, which means less stress, less medical bills, a healthy life and better productivity. However, all these benefits are ignored in GDP calculation.
Hence, GDP does not give the real picture of a nation.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Because so many people misinterpret GDP as a measure of well-being, people have begun to propose...
Because so many people misinterpret GDP as a measure of well-being, people have begun to propose different measures of well-being as alternatives to GDP. The alternative that is getting the most attention is the Genuine Progress Indicator (GPI). Another alternative measure is Gross National Happiness (GNH). Both to provide a measure of the well-being of residents of a country. Search for information about GPI (a group called Redefining Progress is a good source, but feel free to look at others)...
Increases in GDP reflect increases in the well-being of a country. Articulate an argument for and...
Increases in GDP reflect increases in the well-being of a country. Articulate an argument for and against five of the following statements. Answers must be typed with 1.5 spacing. make as per Canadian education. 10 marks.
Provide an example that GDP is not the perfect measurement of well-being or happiness of people...
Provide an example that GDP is not the perfect measurement of well-being or happiness of people of the nation. Explain the reason. Explain how we can measure well-being or happiness of people of the nation better. Your suggestion can be alternative or supplemental measurement to GDP or improvement/modification of GDP measurement.  
Provide an example that GDP is not the perfect measurement of well-being or happiness of people...
Provide an example that GDP is not the perfect measurement of well-being or happiness of people of the nation. Explain the reason. Explain how we can measure well-being or happiness of people of the nation better. Your suggestion can be alternative or supplemental measurement to GDP or improvement/modification of GDP measurement.  
Why GDP is considered as the most important indicator of a country’s people well-being?
Why GDP is considered as the most important indicator of a country’s people well-being?
GDP is often used as a measure of well-being. Is it a reasonable measure of well-being?...
GDP is often used as a measure of well-being. Is it a reasonable measure of well-being? If so, why does Norway with its high standard of living have a relatively low GDP? Why do India and China, with their relatively low standards of living have some of the highest GDP in the world?
Discuss the pros and cons of using GDP to measure well-being. According to the concepts in...
Discuss the pros and cons of using GDP to measure well-being. According to the concepts in this module, GDP measures a nation’s productivity, or “its ability to produce goods and services” (Chapter 1, Section 1-3a). “A country’s standard of living depends on” (Chapter 1, Section 1-3a, ) this productivity, implying that happiness and well-being also depend on productivity. To complete the Discussion activity, write a post that answers the following questions: View a video about measuring gross national happiness: Write...
a. What does GDP measure? b. How well does GDP measure the well-being of a society?
a. What does GDP measure? b. How well does GDP measure the well-being of a society?
Independence and well-being - elderly consider the individual differences among people A. briefly discuss how these...
Independence and well-being - elderly consider the individual differences among people A. briefly discuss how these individual differences are interrelated B. briefly discuss how these individual differences may impact the provision of support
If GDP is a good measure of well-being, why is Switzerland’s GDP so much lower than...
If GDP is a good measure of well-being, why is Switzerland’s GDP so much lower than India’s GDP or China’s GDP? What measures would be better to compare the well-being of different countries? How do you expect these direct measures to correlate with per capital GDP? How or does this impact the trade war issues with China
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT