T-Mobile 9:29 PM Forum for GDP Chapter Due 9/27/2018 Sep 22 at 5:00 AM Forum for
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T-Mobile 9:29 PM Forum for GDP Chapter Due 9/27/2018 Sep 22 at 5:00 AM Forum for GDP Please discuss the following Forum Question before due date. The first person who answers must open separate thread for each question 1. "I just heard on the news that GDP is higher this year than it was last year. This means this year than last year." Comment. that we're better off 2. Discuss the problems you see in comparing the GDPs of two countries, say, the United the People's Republic of China States and Reply Replies Previous Next Dashboard Calendar To Do Notifications InboxExplanation / Answer
1.
Gross Domestic Product (GDP) is defined as the value of all final goods and services produced in the economy during a given period of time, usually one year. The GDP includes all goods and services that are purchased as the final product, it is measured in value terms, and GDP includes all goods and services produced within a given year and GDP only take into account all domestically produced goods and services.
People wellbeing is measured through the standard of living. The standard of living is the level of availability of goods and services that makes the life of each economic agent more comfortable, safer, and healthier. The standard of living can be measured through output per person. Therefore, the GDP per capita measured the standard of living of a country.
However, as GDP does not take into account the environment degradation it somehow fails to take into account the true standard of living. If the environmental degradation is taken into account the GDP per capita of the countries will change, decreasing it for the country which have worst environmental condition. As GDP does not account for environmental condition, it does not correlate with countries wellbeing and standard of living.
Therefore, a rise in GDP from previous to this year can not unambiguously accounted for better off citizens of an economy.
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