2.5 GDP AND WELFARE

1.	2.5 GDP AND WELFARE
Answer» Welfare can be measured in number of ways like the delicious foods cooked by the mother, love from life partner, etc. However, in economics GDP is considered as the proxy to measure the economic welfare of the people of a country. It means that goods and services produced in a country are result of people’s choice which generate welfare of the people. Thus, if calculate the market price of goods and services produced in a country in a particular year, then it gives a ruff idea about the economic welfare of the country. However, this economic welfare does not count or consider the non-economic welfare of the people, as mentioned in the above examples. In view of this, we can say that GDP only measures the economic welfare of the people of a country but not of welfare as a whole.

Answer»

Welfare can be measured in number of ways like the delicious foods cooked by the mother, love from life partner, etc. However, in economics GDP is considered as the proxy to measure the economic welfare of the people of a country. It means that goods and services produced in a country are result of people’s choice which generate welfare of the people. Thus, if calculate the market price of goods and services produced in a country in a particular year, then it gives a ruff idea about the economic welfare of the country.

However, this economic welfare does not count or consider the non-economic welfare of the people, as mentioned in the above examples. In view of this, we can say that GDP only measures the economic welfare of the people of a country but not of welfare as a whole.

Discussion

No Comment Found

Related InterviewSolutions

6. Name any three medicinal plants with their uses.
Name any four plants with medicinal value.
What role does opposition political party play in Indian politics?oes democracy produce an 'accountable government?
Name the program that allows high level language to interrelate with a hardware device.
Explain the statement,' there is a general consensus of high level of buffer stock of food grains is very undesirable and wasteful.' (5mark question)
who was Columbus
ind out where records are kept in your village orty. Who writes these records? Is there an archive?ho manages it? What kinds of documents are storedere? Who are the people who use it?
Project:Take weights of five of your friends.Find out what their weights will be on themoon and the Mars.
Give four examples of adjacent angles in daily life.
when do they use this direction in daily life