real GDP, the most closely-watched aggregate economic indicator and one which is so often used as a measure of the standard of living. but 95%of water tests were polluted. Data Source: (United Nation, USA 2007 ‘Economic and Social survey of Asia and the pacific 2007’). GDP is not accounting Household production, Quality improvement, the underground economy, Health and safety Expectancy, Leisure time, The Environment Quality, Equal wealth Distribution, Political freedom and social justice. Potential for Higher tax revenues, and therefore government spending on public services like health, education and transport. He has over twenty years experience as Head of Economics at leading schools. clean water, life expectancy, leisure time, and it never count for the increase in traffic congestion and loss of open space (www.bos.frb.org cited on 06th May, 2008), The causes to produce environment pollution are the carbon dioxide and Ozone depleting substance use. in same economy might be one group is using all resources. The drop is due to more advance way of lifestyle, health care, and better food in the world i.e. GDP as a Measure of National Welfare essaysGDP per capita is often used as an indicator of welfare in an economy. (www.hdrstats.undp.org cited on 13th May, 2008). Home > Essays > GDP AS A MEASURE OF STANDARDS OF LIVING. Pages 4 Ratings 100% (2) 2 out of 2 people found this document helpful; This preview shows page 3 - 4 out of 4 pages. In 2005 when China was hosting for the Olympic Games in Beijing, satellite data has reveals that Beijing as air pollution capital of World. The major disadvantage of Real GDP using as an indicator is a measure of living standard. We also need to be careful when looking at growth and what it tells us about an economy. For example a baby born can expect to live 85 years having sufficient needs of life to live happy life e.g. (The Guardian, Monday 31 October, 2005). In Australia calculation of GPI shows that GPI was generally less than GDP measure until 1976, it grew at nearly the same rate and from 1976 to 1996 the GPI did not increase.” (Hamilton C. 1997 cited by Mc Taggart et al 1999). Traditionally, GDP (Gross Domestic Product) has been used as a measure of economic welfare, but in reality it is only a measure of national output or … What are the limitations of GDP per capita as a comparable measure of living standards? According to World Bank survey (9th April, 2008) on recently increasing the high prices of food will increase the poverty in poor and developing countries. How to solve: 1. The major advantage of using GDP per capita as an indicator of living standards is because it is used widely, frequently and consistently. According to the latest estimate by Economist’s the calculation of the underground economy is to average 15% of national output for developed countries and 33% for developing countries. 1/2016. Real GDP per capita is the value of national output divided by the population. Article Critique. As compared to India, the maternal death is 117,000 with the population of over billion. Most criticisms regarding GDP concentrate on its focus on economic data and not on people's prosperity. By comparing India’s population below $1 and poverty line per day with Pakistan shows that living standard of India is not very high than Pakistan because people ratio living below $1 is high that mean they are not using full resources of a happy life. (http://www.redefiningprogress.org), Real GDP never count for the quality of life e.g. Next lesson. 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