Reference no: EM131157651
Review each post 125 words each. please do each one on a seperate word document
1. GDP is a great way to measure the economic well being. Nonetheless, not everything in life is perfect and when you are computing big numbers it's a lot more obvious. There are some flaws that the measure of GDP has, for instance it excludes certain information that can contribute to it. Moreover, GDP excludes illegal drugs, growing your own vegetables, conducting their chores such as mowing their lawn, cleaning their pool..etc. The reason for this is because it is not sold in the market there fore cannot be used towards GDP. For the measurements " the market value of all final goods and services produced within a country in a given period of time." Do to these goods not being sold in the market it cannot be reflected in it. For example, if a pool cleaner gets married with his next door neighbor his service to his new home and wife will not be projected as part of GDP. Another Example is if I grew my own vegetables and consumed them at home it wouldn't be reflected in the GDP because it never even made it to the market. Which I believe affects the GDP of a country probably not tremendously which makes GDP an estimate and not exact.
2. The gross domestic product (GDP) is a very useful, yet complicated, tool that we use. Its worth over $16 trillion and its based on income and expenses data. That data is collected by the Bureau of Economic Analysis with the help of the Census, USDA, and the Federal Reserve. Basically all this information helps us summarize the economy and its wellbeing. The government uses to balance the federal budget, investors use it to make decisions, and wall street uses it as well for analysis. It uses durable and non-durable goods, for example a durable good would be appliances and non-durable would be health care, clothing and food. All this data collection is good to calculate the performance of nations but not to measure the wellbeing of individuals. Nothing I have mentioned above makes us happier, the GDP is about money.
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