Question

a. What does GDP measure?

b. How well does GDP measure the well-being of a society?

Answer 1

1.GDP in simple terms is a final production value of goods and services that is produced within the domestic boundary of a country in a financial year

it is generally measured on quarterly and yearly basis

it also helps in telling the economic growth over the period of time

It is an important factor at is used by the economistsacross the world

2.

If we talk about the well being of a society then GDP is also helpful

It helps by calculation of standard of living measure

Standard of living is the ratio of total GDP by the population of the country

It tells that how the people living in that country and what are their economic status and overall position in the society

But still GDP lacks so many important factors that itis why it is not considered to be a perfect measure for economic well-being and development

Examples can be income inequality, environmental Intex, carbon footprint index etc