ls GDP the best indicator of an economy's overall well- being and the welfare of its people? If yes, how does GDP fulll this role? if not, what alternative measures could be considered to better reflect both economy and people's welfare? Gross domestic product (GDP) is an important indicator of the economic performance of a country. It has been known to be the most useful information and data to compare average living standards and economic well-being. The downside that l have seen with using GDP is that it covers the overall economic performance of a certain country. It does not specify the personal income of individuals belonging to all levels of society, and thus it has been known to focus on income distribution among the poorest of the poor. Another reason why GDP is not the best indicator of economic growth is because it depends on exchange rate fluctuations and does not actually reflect purchasing power in the countries being compared. Gross domestic product (GDP) also focuses more on income from production activities. On the other hand, national output could be pretty reasonable by using GDP if the process has eliminated the effects of deflation and inflation in currency rates. Gross domestic product (GDP) per capita is a lot better compared to GDP. It divides economic output by the total population, and it shows an accurate measurement of a country's standard of living. It focuses on the production level of each and every single person living in the country. It depicts the situation of citizens, not only those who are involved in trading and exportation. this is my work add your answer or finish this Up sample works below ECON X ECON X ECO X ECO X ECO X ECON X ECOI X f Facel X RS (PDF X Refe X How X How X + X - G Ims.tac.upv.edu.ph/mod/forum/discuss.php?d=8324 https://www.youtub... f https://www.facebo.. . https://qceservices. @ https://passport.go.. ( https://crs.upv.edu.. @https://Ims.tacupv. E University of the Philippines Tacloban College Learning Management System (UPTac LMS) 13 Saimah Abdullah OF THE The gross domestic product (GDP) is a measure of a country's overall economic output during a certain period of time. In simple terms, it's like a report card for a country's economy. It demonstrates how much money a country generates from everything it sells and does throughout a certain period of time. But wait! There's UNIVERSITY a catch! The gross domestic product (GDP) does not tell us if everyone in the country is getting a fair wage. It's equivalent to declaring that the whole class in Econ 101 - Section C got an A, although some students barely passed. Inequality may cause issues in society. 1908 Gross domestic product (GDP) also misses certain critical information. It only considers items that can be bought and sold in shops, such as vehicles, food, ECON 101-C mobile phones, hamburgers, and so on. However, it does not include things like the hard labor individuals perform at home, volunteering in their communities, or Macroeconomics (FS occupations that are not legally documented, as Prof. Zarzua highlighted in the previous discussion. These items are critical to improving our lives. 2023-2024) Another major issue is the environment. GDP doesn't care if a country's economy is rising despite harming the environment. This is an issue since it has the Participants potential to destroy our future. And we need a healthy Earth for future generations. So, the Human Development Index (HDI) was created to address these issues. Consider it a more comprehensive report card for the entire country. It takes three significant factors such as how healthy individuals are, how much they know Badges (education), and how much money they earn. The Human Development Index (HDI) is better since it provides more information about a country's growth. It allows us to assess whether everyone is doing well or if there is a large disparity between the wealthy and the poor. It also encourages us to consider the environment Grades and how it impacts our lives. Welcome to Econ 101! The Human Development Index (HDI) is a tool that businesses and leaders may use to assist them in making decisions in today's environment, where we care about everyone's well-being. It demonstrates how to improve conditions for all people, not just those at the top of the social scale. As aspiring managers and GDP and GNP leaders, we should go beyond GDP to address issues like inequality, environmental protection, and societal improvement. Aside from thinking about how to earn Aggregage Supply and income, businesses should also consider how they could help society and the environment. Responsible management depends on having an understanding of Aggregate Demand what makes our communities successful. Consumption and Spending Nations, U. (2023, July 17). Human development index. Human Development Reports. https://hdr.undp.org/data-center/human-development-index#/indicies/HDI IS.LM Model Human development index (HDI) by country 2023. (n.d.). https://worldpopulationreview.com/country-rankings/hdi-by-country Policy Instruments Permalink Reply Open Economy Re: Rudas' EntECON X ECO X ECO X ECO X ECO X ECON X ECO! X f Face: X R (PDF X Refe X How X How X + X Ims.tac.upv.edu.ph/mod/forum/discuss.php?d=8387 Q E https://www.youtub... f https://www.facebo... https://qceservices. @ https://passport.go... () https://crs.upv.edu.. https://Ims.tac.upv. University of the Philippines Tacloban College Learning Management System (UPTac LMS) 13 Saimah Abdullah by Anne Loraine Francisco - Wednesday, 6 September 2023, 9:47 AM We always want to know if we are doing right or performing well in everything we do. This same goes for our economy. Our economy needs an indicator to assess economic well-being, that NIVERSITY is, the Gross Domestic Product or GDP. It is what we use to determine whether the economy is performing well, and identify and resolve economic problems. GDP, which focuses on income and spending in the circular flow model, measures overall economic wealth. GDP allows us to assess the country's living level or overall quality of life through the final commodities and services created in a specific time. It indicates the steps that need to be followed, whether a result is positive or negative. A greater GDP is generally a good thing since it suggests that the nation has much wealth, which allows it the potential to strengthen the economy. Because they have the resources, a country might readily give access to high-quality healthcare and ECON 101 -C education. GDP also enables international comparison and the ability to adopt one another's successful economic development strategies. In the end, measuring GDP and ensuring that it Macroeconomics (FS grows will be advantageous to all of the citizens of a nation since it will help them have a comfortable standard of living for everyone. 2023-2024) However, as stated in the module, GDP is not a perfect gauge of the economy's health. It may be able to measure the nation's output, but there are better metrics for determining the Participants economy's health and the populace's well-being. The GDP leaves out a lot of the economic activity. One illustration is the inability to evaluate income distribution accurately, which could lead people to believe that everyone in the economy has the same GDP per person when, in fact, they do not. Another is that it misrepresents GDP data by failing to adequately account for the Badges damage that output production does to the environment. Additional factors like unpaid labor, leisure time, and others were also not considered. Money should not be the primary priority since Gredes it does not necessarily correspond to happiness. Since people and natural resources, which must go hand in hand with money, are obtained from a country's population and environment, their welfare must also be a top focus. Welcome to Econ 101! The Quality of Life Index (OLI) and Genuine Progress Indicator (GPI) are two alternatives to GDP that can be used to account for human welfare and environmental preservation. The Philippines' National Economic and Development Authority created the Quality of Life Index, This objective and subjective indicator seeks to gauge the populace's welfare and the nation's GDP and GNP advancement under the project "AmBisyon Natin 2040" (Edition, 2022). This initiative aims to provide Filipino citizens a deeply rooted, comfortable, and secure quality of life. The Genuine Progress Indicator is another one that considers the negative consequences of GDP, particularly when considering the environment, as it seeks to maintain the sustainability of the economy. It Aggregage Supply states that any time there is pollution, it will be viewed as a loss of GPI because the contamination will need to be cleaned up, which will incur costs (Hayes, 2021). and Aggregate Demand In a nutshell, while GDP may reflect the economy's health, it is not the best measure of human welfare or environmental protection. To create a decent economic well-being, factors of production, including land, labor, and capital, must always come together and, therefore, must always be put into consideration. Consumption and Spending References: IS-LM Model Edillon. (2022, May 26). Quality of Life Index in the Philippines "From GDP to well-being and sustainability: Means and Measures." https://www.unescap.org/sites/default/d8files/event- documents/Philippines_GDP-Well-being_SideEvent_Commisssion78_26May2022.pdf. Policy Instruments Hayes, A. (2021, July 25). Genuine Progress Indicator (GPI): Definition, Formula, Vs. GDP. Investopedia. https://www.investopedia.com/terms/g/gpi.asp Open Economy Permalink Reply DashboardECON X ECO X ECO X ECO X ECO X ECON X ECO X f Facel: X R (PDF X Refe X How X How X + X Ims.tac.upv.edu.ph/mod/forum/discuss.php?d=8392 https://www.youtub... f https://www.facebo. https://qceservices. @ https://passport.go.. ( https://ers.upv.edu.. https://Ims.tacupv. University of the Philippines Tacloban College Learning Management System (UPTac LMS) 13 Saimah Abdullah As we all know, the Gross Domestic Product, commonly known as GDP, is one of the tools for understanding the economy's overall well-being. It helps us know if the economy is contracting or expanding based on the measurement of market value and the final goods and services produced within the geographical boundaries of a country over a specific period. Based on these points, as discussed at our meeting, we can say that GDP is the most common indicator of a country's economic welfare. NIVERSITY In my opinion, the gross domestic product may not be the best indicator of economic progress and the welfare of its people. It does not necessarily mean that I do not consider the essential characteristics of GDP; however, I do find that GDP lacks some factors that are not taken into account. These factors may affect the welfare of its people, such as inequalities in terms of their non-market activities, compensation, and environmental impact. In terms of non-market activities, we do know that, as we discussed in the previous session, many non-market activities, such as household labor and volunteerism, are not included in a ECON 101 -C country's GDP. This exclusion in the country's GDP tells me that, despite the hard work of these people, it is not being credited as to what it should have been; hence, this should also be considered. Macroeconomics (FS 2023-2024) Furthermore, we, the households, should also be given value given that we are the ones who provide factors of production to firms that enable us to gain wages and other forms of income. Aside from this, as firms continue to produce consumer goods and services, they tend to forget the environmental impacts, such as changes in air quality, climate, and biodiversity emergencies, that destroy our habitat and human Participants well-being (Dang et al., 2023, Onakuse, n.d.). Thus, it is crucial that the measurement of an economy's well-being also consider these three factors Badges The alternative measures that can better satisfy both the economy and people's welfare are the incorporation of the Gross Environment/Ecosystem Product (GEP) and the Human Development Index (HDI). I have considered these two measures because they will be able to tackle the problems mentioned above that are not evident in measuring the country's GDP. The Gross Environment/Ecosystem Product (GEP) can help Gredes us determine the ecosystem services of a specific area (Staff, 2022; Onakuse, n.d.). in this way, we can look at the total contribution of goods and services supplied by the ecosystem (land and water bodies). The latter, on the other hand, deals with the emphasis on giving importance to the lifestyle and livelihood of the people. It deals with life expectancy, education, and income for people (United Nations, n.d.). However, I Welcome to Econ 101! suggest that these alternative measures be studied further before fully implementing and incorporating them to measure our economy's well-being. GDP and GNP References Aggregage Supply Dang, H., FU, D. H., & Serajuddin, U. (2023, September 4). Does GDP growth necessitate environmental degradation? World Bank Blogs. https://blogs. worldbank. org/opendata/does-gap- and Aggregate growth-necessitate-environmental-degradation Demand Onakuse, S. (n.d.). GDP ignores the environment: why it's time for a more sustainable growth metric. The Conversation, https://theconversation. com/gap-ignores.the-environment-why-its-time-for-a-more- Consumption and sustainable growth-metric-170820 Spending Staff, C. (2022, February 19). What is Gross Environment Product? - Civilsdaily. CivilsDaily. https://www.civilsdaily.comews/what-is-gross-environment- IS-LM Model product/# ~:text=What%%20is%20Gross%20Environment*%20Product%20%28GEP%29%3F%201%20GEP,at%20district%20levels%20%20state%20%20and%20country.%20More%20items Policy Instruments United Nations. (n.d.). Human Development Index. Human Development Reports. https://hdr.undp.org/data-center/human-development-index#/indicies/HDI Open Economy Dashboard Permalink ReplyHi, Irene! You are completely on point. Fair wages are undoubtedly an important part of economic wellbeing that GDP frequently fails to appropriately address. While a country's GDP reects its overall economic output, it does not reveal how wealth is distributed among its population, either fairly or unfairly. A sizable segment of the population might not be beneting from the economic gains in many circumstances where GDP growth coexists with growing income disparity. Fair wages are necessary to guarantee that the advantages of economic progress are distributed fairly among all societal members. Income and living standards can diverge when the GDP rises, while the bulk of employees' earnings remain at or grow more slowly, but ination perpetuates