1. What are some production items that the typical measure of GDP might miss? Wh
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1. What are some production items that the typical measure of GDP might miss? Why? GDP sums up how a country is doing. It doesn't include the well being of a country, education, wage inequality, health, and many more factors. Many economists believe the GDP isn't a great way to represent a country. The main reason we don't include these in our GDP is because you can't put a monetary value to it. 2. Should these missed items concern us, and. if so. what should we do about it? Yes, they should concern everyone. Without including these into the GDP we aren't accurately representing the country. The current GDP just measures what is bought and sold, but it doesn't capture what the things that makes a society happy that isn't bought or sold. We should find a way to measure these items and include it in our GDP If we do we will get a better view offiow our country's well being 3. Scenario: You have a garden in your backyard/window flower box. Provide examples of when the items you grow should or should not be counted in the GDP calculation? Is it possible to have a situation where both occur (count and not be counted) In this scenario, we would include all items that we grow. Since we are producing it for our own use it would be included in the GDP calculation. 1 believe so. if you were to cook a vegetable from the garden the finished product would count, but not the hard labor growing that vegetable or time cooking the final productExplanation / Answer
Ans. In my Opinion , First 2 answers seems to be correct but some more explanation is needed in order to make them more understandable. You can use the Concept of ' Welfare and GDP' which shows the relation between Welfare of a country and GDP. GDP of a country does reflect the Welfare in a country but it suffers from certain limitations too and that include : Happiness or Sadness of People , Satisfaction of People , Honesty and Dishonesty of People , Damage to the environment , Some Non monetary benefits availed by people etc. Along with Monetary measures , a measure of these things is also required because all these things collectively make and constitutes a Human's Life .
Ans.3 I slightly differ from you in this answer. If a person grows some vegetables or fruits in his or her backyard and then use it for their own consumption , then they are not included in the Calculation of GDP as these products didn't enter the market. Items grown in the backyard can be counted in GDP when these items are brought to the market and sold to people. Yes , it is possible that both the situation occurs simultaneously when half of the vegetable are sold in market and half are used for home consumption.
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