This website uses cookies to ensure you have the best experience. Learn more

Real Gdp Is Increasingly Criticized For Its Alleged Failure To Adequately Measure The Standard Of Living. To What Extent Do You Think This Criticism Is Valid?

2450 words - 10 pages

Real GDP is increasingly criticized for its alleged failure to adequately measure the standard of living. To what extent do you think this criticism is valid?Gross Domestic Product (GDP) is defined by John (1999) as the total market value of all the final goods and services produced within a nation's borders in a given time period. Each goods and services produced and brought in the market has a price. The price of the total output is called as GDP. It can be measured by either cumulating all the income earned in the economy or all the spending in the economy and both measures should roughly equate to the same total. Real GDP is the total GDP has been adjusted to remove the effects of inflation. This allows one to compare GDP figures and changes from one country to another other time and thus evaluates what a country's economy is actually worth in terms of particular year's product prices.In nowadays, real GDP is widely used by policymakers, economists, international agencies and the media as the primary scorecard of a nation's economic health and well-being. People believe that the standard of living is closely tied to the real GDP. This generally signifies that the economy is wealthier and producing more, individuals are better off, and that living standards are higher. However, people more recently argue that real GDP in certain circumstances could not fully represent people's standard of living. In this essay, I am going to examine the extents in detail by analyzing the real GDP from different perspectives. However, the essay will mainly address the limitation of real GDP to show that real GDP could not represent the correct value of the economy; therefore it may not adequately measure the standard of living.Real GDP only includes the total domestic production of an economy and the output of some goods and services are unrecorded, which in the long run results understate the total real GDP. We can view this problem from national and international perspective. First, we look at the national level. In a country, items which are not made to sell in market are excluded from the real GDP as there is no money exchange in hands. For in stance, someone plants vegetable for himself and does not take the vegetable to market, the value of the vegetable is not included in the real GDP. However, if this person sells the vegetable in the market, the value of the vegetable adds to real GDP. Another situation is black market. Many self-employed people normally undertaken their job privately, therefore they are usually paid by cash. If they don't declare their income for tax purpose, then this type of income is excluding from real GDP as well. Consequently, real GDP may even not be able to reflect the correct value of a country's economy as a whole from national perspective. It is hard to say it could adequately measure the standard of living.From the international perspective, real GDP measure the output of the home economy of a country and thus excludes...

Find Another Essay On Real GDP is increasingly criticized for its alleged failure to adequately measure the standard of living. To what extent do you think this criticism is valid?

The Importance of Being Earnest is described as satire. Satire implies criticism of society and social institutions. Do you consider this play satirical? What do you think this play criticizes?

848 words - 3 pages watching it.The Importance of Being Earnest seems to be a criticism of society. The play is a light-hearted comedy but also a social satire utilizing this chance to criticize social issues. The use of irony reveals an inconsistency between the characters words and the truth, suggesting that society is hypocritical. The Importance of Being Earnest reflects the audience it was written for. From the entrance of "Mr. Earnest Worthing," there are

'Richard is a truly evil character with no justification for his actions'. To what extent do you agree with this assessment of Richard's character in Shakespeare's Richard III?

834 words - 3 pages gaining the throne. He uses this desire as a way of justifying his actions, and removing himself from the horrors of what he is doing. I believe that Richard had justification for his actions, even if his justifications seem repulsive to those viewing the play.Richard's first display of the extent of his evil, was when he arranged to have his brother Clarence killed. He carefully plans the murder, and seems to find amusement in what is to happen

In "Weep Not, Child", Njoroge says confidently, "sunshine always follows a dark night." To what extent do you think the novel supports this message of hope?

1039 words - 4 pages preparations for the strike, all the Kenyans had high hopes that the strike would change their living conditions. The strike was a complete failure, and Ngotho ended up by losing his home and job.Njoroge's family is also a source of hope. Njoroge admires the oneness of his family, through which he is motivated to get education and support them. This is supported by Kamau in the beginning of the novel when he says, "everything will be alright. Get education

Do You Think It Is Necessary For People To Wear Religious Symbols In Daily Life?

342 words - 2 pages them believe strongly in their Gods and they, therefore, gain considerable strength and confidence from these so-called Gods in one way or another. And if the feeling of being taken care of by Gods can help make them feel good and do their jobs more efficiently, there is no point in forbidding people to do so.Last but not least, as people often say, this is a free world and nobody should be deprived of his/her very own right to practice his/her

Do you think that it is morally acceptable to have preferential treatment programs for disabled veterans?

951 words - 4 pages Yes, it is morally acceptable to have preferential treatment programs for disabled veterans. Nothing contained in this title shall be interpreted to require any employer . . . to grant preferential treatment to any individual or to any group because of the race, color, religion, sex or national origin of such individual or group on account of an imbalance which may exist with respect to the total number or percentage of persons of any race

To Kill a Mockingbird - Harper Lee 'To Kill a Mockingbird is a book about courage'. To what extent do you agree with this statement?

961 words - 4 pages . When explaining this to Scout he states,"You might hear some ugly talk about it at school, but do one thing for me if you will: you just hold your head high and keep those fists down. No matter what anybody says to you, don't you let them get your goat Try fighting with your head for a change...It's a good one, even if it does resist learning". Pg 84Atticus without a doubt is the representation of courage itself. This courage is however, not only

CAPM vs. APT: Do you think APT or the CAPM is the best approach for a financial professional to use?

1036 words - 4 pages and to measure their sensitivity coefficients. This makes the model almost impossible to put into practice. To date, the APT model is still in its relative infancy. The empirical work which has so far been done does not provide any conclusive results on the efficacy of the model. In conclusion, both the APT and CAPM do offer us alternative conceptual frameworks for trying to understand the connections between risk and return and thus the task of

To what extent can we adequately study people who do not share our views?

2904 words - 12 pages atrocities in the second world war and the excuse given by many Nazis when called to account that they were 'only obeying orders'. He, and many others, didn't think this was a valid excuse, and expected his experiments to prove the exact opposite of what in fact he found: that the majority of ordinary people will obey orders to the extent of killing another human being. This finding has important implications and it can therefore be argued that the end

Do you think it is morally acceptable for an employer to make rules against dating in the workplace?

1238 words - 5 pages action itself. Here we assess the rights people have and what duties might go along with them without consideration given to consequences. I have a right to speak my mind, for example, especially when it is not for the greater good."When evaluating the ethical aspects of unprofessional relationships it is necessary to look at the situation from the perspective of rights violations. There are three types of rights that have to be considered using this

Who do you think is the hero of this novel Gatsby, or Nick Carraway?

577 words - 2 pages Who do you think is the hero of this novel Gatsby, or Nick Carraway? Give full reasons for your choice I believe that "The Great Gatsby" is a book about a man, Gatsby that had an obsessive love over a woman, Daisy. It is about catching his "unattainable" vain dream and completing his goals. So in my opinion the main hero of the story is Gatsby and not Nick Carraway. However even if this novel is written about Gatsby, we should not

To What extent is Lady Macbeth Pure evil? Do you agree?

923 words - 4 pages the murder of Duncan to prove himself:"...From this time,Such I account thy love. Art thou afeardTo be the same in thine own act and valourAs thou art in desire? Would'st thou have thatWhich thou esteem'st the ornament of lifeand live a coward in thine own esteem...When you durst do it, then you were a man."This is a major flaw of Lady Macbeth behind her ambition for her husband's success. She did not judge her behaviour and it causes the moral

Similar Essays

"There Is Not One Single Psychological Theory That Can Adequately Account For Human Aggression And Violence." To What Extent Do You Agree With This Claim?

1548 words - 6 pages measure it and definition. One researcher may define aggression from the physical out burst such as pushing and striking, where as another research would define aggression as physical and verbal but not necessarily both at the same time. How much or little should a definition include, is motivation important? What about the target does that change the definition of the aggressive act. To some extent the definition of aggression is determined by

"Monopoly Is Against The Interest Of The Consumer." To What Extent Do You Agree With This Statement And Why?

1388 words - 6 pages or restrict output of his product in order to increase sales revenue, as the demand curve is less elastic. This means that the monopolist faces the entire market demand curve for its output.There are several different types of monopoly:- A pure or absolute monopoly is basically a standard monopoly, meaning that there are no close substitutes in the market.- Technological monopolies involve monopolies were there are high capital costs such as in

What Do You Think Is Real About Realism?

830 words - 3 pages What do you think is real about realism? I find American literature is made harmonious in the reader's mind as they experience the familiar emotions and almost tangible moments of an author’s expression of realism. Realism is the experiential expression of reality through the written word, as articulated prolifically throughout Sarah Orne Jewett’s, “White Heron”. “A White Heron” “A White Heron” is a story that daintily woos the

To What Extent Do You Think The Modern World Faces A 'dictatorship Of Relativism'?

1128 words - 5 pages trade between nations highlights how wealthier nations have the power to shape world economy and disturb equality.Due to the political world desiring wealth, people have been left with misconceptions of certain issues facing society. On a large scale, the issue of children's drug dependency is rising in many Middle Eastern countries. Whilst children of such places usually struggle for education, this no longer is a priority. Since survival is