Question
According to the PowerPoint presentation by Erskine S. Walther, gross domestic product (GDP) is the money value of all the final goods and services produced
According to the PowerPoint presentation by Erskine S. Walther, gross domestic product (GDP) is the money value of all the final goods and services produced in a year inside the domestic boundaries of an economy. Which gives the total expenditure/income/production taking place in the economy; when divided by the population of the country, the per-capita GDP of an economy is produced. Though GDP and GDP per capita is most widely used as an economic prosperity indicator there has been a lot of debate against per-capita GDP as the best measure of social-welfare according to video #1 "Better quality of life". Following just the GDP can sometimes be misleading as illustrated in video #3 "when it comes to quality of life, what matters to you?" There is no perfect measure of economic well-being.
True, GDP per capita is easy to calculate and seems fair but it doesn't consider a lot of things such as: housework (a maid contributes to GDP, a housewife does not), child care (putting children in daycare contributes to GDP, taking care of them at home does not) as illustrated in the article "Is GDP a Good Measure of Economic Well-Being?" written by Gregory Mankiw (p. 480-481). Also, it's hard to compare across countries because GDP is calculated using a country's prices. For instance, a haircut in India costs less than a haircut in America, therefore, ten haircuts in the US contribute more to GDP than haircuts in India. Moreover, GDP is either the market value of all goods and services produced in an economy during a certain period, or all the expenditures in an economy during the same period, or all the income earned in the economy during the same period. As such, the GDP might reflect the level of marketization of the economy, and not necessarily a higher level of living.
Based in the reading how you properly would respond to this:
When comparing national GDPs, the Purchasing Power Parity (PPP) approach is used. The method of adjusting GDP allows for price differences. Thus, the difference in the price of a haircut would be in the PPP value. Always use PPP GDP values whenever available, which is pretty much all the time.
Unless you are arguing that marketing causes consumers to buy products that don't add to their standard of living, marketing will have little to no impact on the national standard of living.
Could you please provide a generic answer based on this?
****Unless you are arguing....****
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