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Session 5 GDP - A Good Measure of Well-Being

GDP measures the total market value of all final goods and services produced within a country in a period of time. However, GDP has limitations as a measure of economic well-being, as it does not account for factors like leisure, domestic services, or environmental quality. Alternative measures have been proposed, such as Net Economic Welfare and the Gross Happiness Index, which attempt to provide a more comprehensive assessment of a population's well-being.

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25 views

Session 5 GDP - A Good Measure of Well-Being

GDP measures the total market value of all final goods and services produced within a country in a period of time. However, GDP has limitations as a measure of economic well-being, as it does not account for factors like leisure, domestic services, or environmental quality. Alternative measures have been proposed, such as Net Economic Welfare and the Gross Happiness Index, which attempt to provide a more comprehensive assessment of a population's well-being.

Uploaded by

annanyapassi14
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Is GDP a good measure of Economic Well-

being?
16-01-2024

MISSION VISION CORE VALUES


CHRIST is a nurturing ground for an individual’s Excellence and Service Faith in God | Moral Uprightness
holistic development to make effective contribution to Love of Fellow Beings
the society in a dynamic environment Social Responsibility | Pursuit of Excellence
CHRIST
Deemed to be University

Defining the GDP- The Phrases

Market value- Different goods- market value reflects the amount people are
willing to pay

Of all- different types of items

Final- intermediate goods

Goods and services- tangible goods and intangible services

Produced- current production

Within a country- Domestic territory, NFIA

In a given period of time- specific period, intervals

Excellence and Service


CHRIST
Deemed to be University

Components of Total GDP/ Expenditure


Consumption: spending by households on goods and services, with the
exception of purchases of new housing

Investment: spending on capital equipment, inventories, and structures,


including household purchases of new housing

Government purchases: spending on goods and services by local, state, and


federal governments. Transfer payments are not included

Net exports: spending on domestically produced goods by foreigners (exports)


minus spending on foreign goods by domestic residents (imports)

Excellence and Service


CHRIST
Deemed to be University

Is GDP a good measure of economic well-being?

The importance of higher GDP

GDP is not a perfect measure of well-being. It does not account for leisure

GDP is not a perfect indicator of well-being. It does not include the value of
domestic services

It excludes the quality of environment

Net Economic Welfare (NEW)

Gross Happiness Index (GHI)

Excellence and Service

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