What are the problems of GDP as a measure of well-being?
What does Gross Domestic Product measure?
Gross Domestic Product (GDP) is an estimate of the real dollar value of all goods and services produced in an economic system over a period of time, usually a year. GDP per capita takes the GDP number and divides it by the population to obtain GDP per capita, a better measure of the country's standard of living.
Answer and Explanation:
Looking at GDP without also estimating GDP per capita does not provide a good measure of the well-being of a country and its people. Another problem associated with GDP as a measure of well-being is more complex. Measuring the material wealth of a population does not say anything specific about whether the people are happy and content with their circumstances. Scholars around the world have recognized this deficiency and are working to find a measure of happiness, but nothing has been accepted on a global basis yet.
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from Economics 102: MacroeconomicsChapter 10 / Lesson 2