How does GDP fare as a measure of an economy\'s growth & development? Do you thi

Question

How does GDP fare as a measure of an economy's growth & development? Do you think that 'GDP' is, by itself, a comprehensive and representative measure of an economy's status and well-being? Does it present a complete picture of a country's growth and development? Why or why not? Does the government or any other responsible agency provide other indicators that may be used to measure a country's overall growth and development? What might they be, and what information do they give us? Please explain why that information is relevant in the context of assessing the well being and forecasting future growth prospects of a nation.

Explanation / Answer

GDP means Gross domestic product. GDP per capita is calculated by the dividing GDP by total number of people. A rise in GDP per capita will show rise in productivity. More that you produce, the more you sell. It gives you an idea of what the people are engaged in. GDP per capita can be used as an indicator of standard of living as well. One can conclude that having a higher GDP per capita will be interpreted as having a higher standard of living. You can assume that they don't have the best infrastructure.

Cause it shows the net production. It doesn't include speed money & black money which occupies a larger space in one country's economy. It also doesn't include the amount of debt of the country. So GDP is a picture of a nation's economy but not it's representative.

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