As the chapter states GDP does not include the value of used goods that are resold. Why would including such transactions make GDP a less informative measure of economic well being?

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Sonal BahlLv10

10 Jan 2021

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Related questions

The government purchases component of GDP does not include spending on transfer payments such as Social Security. GDP does not also include the value of used goods that are resold. Do you think such exclusion make GDP a less informative measure of economic well-being? What other production of goods and services do you think are excluded from the GDP? What is the impact of such exclusion on the economic welfare?

pearhippopotamus745

Take a look at the following articles:

"Why GDP Fails as a Measure of Well-Being," CBS News

"Why the GDP is Not a Good Measure of a Nation's Well-Being," Psychology Today

"Is GDP a Satisfactory Measurement of Growth?" OECD Observer

"Hooray for GDP! GDP as a Measure of Well-Being," Center for Economic Policy and Research

After reading the articles, draft a response to the following question:

Is GDP an adequate measure of human well-being...

Be sure to include citations and brief bibliographic entries at the end of the post and feel free to integrate sources outside of these in your response

Please don't forget the citations and please I need it typed because most of the time I can't read the handwriting

Thanks

pearhedgehog770

GDP is the major economic variable used to measure the health of the economy; indeed, as we learn, recessions are defined based on the direction of change in GDP. GDP is a difficult measure to construct, as certain transactions and expenditures are not included. Here are some questions that may help us better understand what GDP is and how it is constructed:

- What is the difference between Real GDP and Nominal GDP?

- Why do we avoid multiple counting or double counting when measuring GDP?

- Are the sales of used goods included in the current year's GDP? Why or why not?