marketing in modern business envirolnment

GDP Alleged Failure to Measure Standard of Living

Introduction

There are many interpretations of measuring the GDP that determines if the standard of living can be analyze to reflect either negative or positive growth . The criticism on actual measurement for accurate analysis of GDP is a challenging aspect due to the many layers of identifying the main criteria 's (Baumohl , 2007 . The Gross Domestic Product (GDP ) does not actually take into account bartering and the black market . This aspect can cause one of the main reasons for difficulty to assuring the

measurement required in the final analysis The account for bartering illustrates one out of many aspects that produces challenges for economists as well as the modern person to determine what actual state the economy is in at a given time (Duffy 1993

The measurements of the GDP foster the externalities such as a damaging effect to the environment that produces fluctuations in the overall conclusion of gross domestic product matrix . The externalities are elements that come about at different times during the given time period of focus and analysis . These elements are triggered by other world markets to infuse the supply and demand - that in turn will present either true or false assumptions (Mankiw , 2006 . Therefore , the level of externalities can create a damaging outcome to the determination of the GDP matrix within a given country

There are also attributes for determining the effects of the GDP that excludes volunteering and domestic work , in which limits the final assessment to measuring its relation to the standard of living Therefore , the makeup for elements inclusion or exclusions is fundamental to establishing the linkage to cause and effective of how good the current standard of living is standing . The measurements of the GDP provides an outlook to determine which elements mention is either working together or against one another that can affect the final outcome Economic Growth and How It Relates To Measuring GDP

The economic growth is an indicator that outlines the increase in the economy 's ability to product goods and services (Dasgupta , 2007 . In this analysis , the measurement to determine how such reference in standard of living will occur . To access the level of such growth individuals should be able to see some advantages to the growing economy . The parameters can be ranging from new jobs available to real estate increase sales over a given time period (Steger , 2003 Therefore , the extra economic growth should be producing the higher tax revenues warranted to demonstrate the growth

Furthermore , the higher tax revenue is proposed to be spent on public services that will infuse stimulus into the economy . The increase in the economic landscape will as well as increase the economic output that can result in certain conditions in the following two elements

More resources are used in the economy

Existing resources are used more efficiently

There are barriers that come into play that translates into alter the determination of GDP cause and effect on the standard of living . The...