GDP is an inappropriate measure of well-being because it doesn’t incorporate some important factors including illegal or black market activity, environmental activities, in home activities (domestic), and leisure activities. These all impact the well-being which are not accounted for in GDP.
Some feel that some aspects of those well-being factors should be incorporated.
Identify the two basic approaches to measuring GDP.expenditure approach and income approach
How do they differ? they differ in the way in which they calculate the gdp
Explain why the amounts of the two approaches are unequal. because they calculate different variables to come up with the gdp
What are the three major goals of macroeconomics? economic growth low unemployment and low inflation.
Explain which goal is the most important to you and/or someone you know. low inflation because I want my money to be worth more in the long run.
Why is GDP an inappropriate measure of well-being?It is not an appropriate measurement of well beign because it does not take
into account the standard of living and other things such as leisure.
GDP is inappropriate in measuring of the wellbeing of citizens of a country. GDP which is the gross domestic product of a particular country does not take into consideration certain economic factors.For instance the GDP of China might be higher than that of USA but does not necessary mean that the standard of living of China folks is be better than that of USA.