Transcript Ch 22 Weakness of GDP ppt

Evaluating the Quality of the “GDP”
1. A better measurement of quality of life and
higher standard of living than GDP is ….
2. Refer to the previous question: how do you
calculate this ?
3. Refer to the answer in #1 : this measurement is
also closely correlated to two other measures of
the quality of life….name them..
4. GDP does not directly measure those things
that make life worthwhile, but….
Left Out
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Leisure
Work at home
Environment
Income distribution
100 people make $50,000 = GDP $5 mil and
GDP per capita =$50,000
• 10 people make $500,000 and 90 people with
nothing