SOCI 235 Study Guide - Comprehensive Final Exam Guide - Patent, Intellectual Property, X86 Assembly Language
20 Nov 2018
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Document Summary
Output is measured in aggregate with gdp. We are interested in productivity growth because it has implications about living standards. Main point: productivity has risen a lot in the last century. There is a problem with the measure of gdp. Expenditure = c + i + g. Expenditure approach has many issues: effects of gov. We can conclude that gdp numbers underestimate quality improvement because only a limited number of products have had hedonic indexes developed for them. A common view is that rising inequality means that, in the us, living standards has not risen as much as gdp per capita. Government expenditure is less closely related to personal preferences than private expenditure. Means that connection between gdp per capita and living standards is weaker. Issues with gdp: valuing gov. expenditure, expenditures that don"t contribute to living standards, homeownership after mortgage, quality improvements. There are hedonic indexes (for example, with computers)
