It is generally agreed today that a well-known indicator to measure economic activities is the gross domestic product (GDP). Although the GDP is heavily discussed in science, economics and politics it has emerged as particularly important for both economic assessment of countries and even for well-being (van den Bergh, 2009). The main question which arises is: Does the GDP illustrate a possibility to quantify economic activity and well-being and thus, can GDP compare countries with each other adequately? This essay examines the topic: ‘Is GDP a good measure of economic activity and well being? Give reasons for your answer. What particular problems arise when comparing GDP across countries?’ The structure of this paper refers to the key figure GDP. The main body is separated into two parts. Firstly, chapter 2.1 will consider GDP as a measurement of economic activity and well-being. Secondly, section 2.2 will examine potential limitations to compare GDP across countries by stating arguments. Finally, the conclusion will abstract the main arguments and will give a firm stand.
Table of Contents
List of Abbreviations
List of Figures
List of Tables
1. Introduction
2. Main Body
2.1 GDP, Economic Activity and Well-Being
2.2 Limitations of GDP by Comparing Countries
3. Conclusion
4. List of References
5. Appendix
Frequently Asked Questions
What is GDP?
GDP stands for Gross Domestic Product, which is a key indicator used to measure the economic activities of a country.
Is GDP a reliable measure of a country's well-being?
While widely used, its effectiveness as a measure of well-being is heavily discussed in science and politics, as it may not capture all social factors.
What are the problems when comparing GDP across different countries?
Limitations arise due to differences in currency values, cost of living, and the varying ways economic data is collected globally.
Can GDP adequately quantify economic activity?
GDP is considered a primary tool for economic assessment, but the essay examines whether it provides a complete picture of a nation's activity.
Who are the main stakeholders interested in GDP measurements?
Economists, politicians, and scientists use GDP for country assessment and international comparisons.
- Quote paper
- Niels Aulich (Author), 2012, Is GDP a good measure of economic activity and well being?, Munich, GRIN Verlag, https://www.grin.com/document/195053
