Problems with GDP Flashcards
1
Q
What are the problems with using GDP as a measurement of SOL?
A
Doesn’t account for:
shadow economy
domestic production
population size
inequality
net property income from abroad
2
Q
What should population size be measured in?
A
GDP per capita
3
Q
What should net property income from abroad be measured in?
A
GNI per capita
4
Q
What is the problem with inequality?
A
GDP is only an average
5
Q
Where is the shadow economy more relevant?
A
developing economies
6
Q
What do PPPs do?
A
adjust for differences in the costs of living
