Introduction to Macroeconomics: Around theWorld

Costa Rica?s GDP per capita is about $10,000 per year, orone-sixth that of the United States. However, the SustainableDevelopment Solutions Network ranked Costa Rica higher than theUnited States in their 2018 World Happiness Report.This highlights some of the shortcomings of using GDP per capita asa benchmark for standard of living.

Some economists argue that GDP should be updated to includequality-of-life measures. Consider each of the following items, andclassify each as included or not included in the GDPmeasure.

a. The overall health of Costa Rican citizens included in GDP. b. Total spending on health care in Costa Rica included in GDP. c. Low crime rates in Costa Rica included in GDP. d. Legal fees to prosecute a criminal in Costa Rica included in GDP. e. A Costa Rican father buying his son an inhaler for treatment of asthma included in GDP. f. Air quality in Costa Rica's major cities included in GDP.