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Please give one thoughtful paragraph for each one of the following questions. Please provid example for your analysis as well as some data to backup your argument. Do not just google for information as i can just do that myself. Thanks.

1. What are the limitations of the GDP in measuring total output and national welfare? What products (services) are excluded from the GDP computation?

2. Is the GDP measure underestimating or overestimating national production and total income in the economy? Why?

3. What are the impacts of the shortcomings of the GDP as a measure of the national product and national welfare?

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Kritika Krishnakumar
Kritika KrishnakumarLv10
28 Sep 2019

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Related questions

Gross Domestic Product (GDP) only measures the value of marketed goods and services for a country during a given period of time.

Is the GDP measure underestimating or overestimating national production and total income in the economy? Why?

What are the limitations of the GDP in measuring total output and national welfare? What products (services) are excluded from the GDP computation?

Topic 1: GDP and Its Limitations

The national income accounts measure productivity, spending, and income; but these accounts were not designed to measure economic welfare. GDP only measures the value of marketed goods and services for a country during a given period of time. Goods and services that are not sold in markets, such as food produced and consumed at home and household articles, are not included in GDP. Discuss aspects of economic welfare ignored in GDP measurement.

Discussion Checklist:

A.) What are the limitations of the GDP in measuring total output and national welfare?

B.) What products (goods and services) are excluded from the GDP computation?

C.) What are the impacts of the shortcomings of the GDP as a measure of the national product and national welfare?

After our last "conversation", I came up with some additional questions that I believe if I can answer when talking to my boss will increase my chances of landing a raise this year. It seems to me that if the economy grows, then my salary should grow as well. Given that this will be the premise of my argument, I need to have the following questions answered:

a) What would be the best measure of growth in the economy? I have heard the terms GDP, Personal income, Disposable income, and others that relate to the U.S. economy. Could you please sort out this terminology for me, and make a recommendation for which of these measures of economic performance I should use in my contract negotiations? If you could provide some definitions for these measures, it would make me feel more confident.
b) How fast has the economy grown over the last year, the last decade before the current recession, and since 1978 when I entered the job market? If you could provide this information as a percentage growth rate, I would greatly appreciate your efforts. Also, please show me your calculation in case I want to reproduce it for my boss. I am not so swift at the whole math thing.
c) Lastly, I was listening to a news broadcast the other evening and reported was discussing gross national income. This is confusing to me because I thought the measure of income and output were measure by GDP; at least that is what I remember from a friend of mine who took econ in college. Please give me a brief explanation of GDP and how it relates to gross national income. If you could provide a picture or diagram to help me understand I would greatly appreciate the effort. My boss gets crafty occasionally and I would like to understand these concepts if he starts talking about gross national income. Just in case. In addition, is this a good time to crank on my boss for the raise?

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