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International Difference Between Gdp and Quality of Life

In: Business and Management

Submitted By Arashinki
Words 2868
Pages 12
Assignment 1

Project report:
International difference between GDP and Quality of life

Subject name: Macroeconomics
Teacher’s name: Dr. Nguyen Trong Hoai
Student’s names: 1) Ho Tran Thuy Nguyen 2) Nguyen Le Hoang Phuong 3) Phan Hoang Anh Thu 4) Huynh Thi Thu Ha 5) Le Phuoc Thanh Tin 6) Loi Kim Chau 7) Han Khanh Phương 8) Le Hoang Vu 9) Vu Quang Huy
Date due: 15/05/2011

Table of Contents

I/ Introduction: 3

II/ GDP- a powerful tool for economics measurement: 4

III/ Why is GDP not a perfect measure of well-being? 7 1. Leisure time: 7 2. The environment: 8 3. Non-market activity: 10

IV/ Conclusion: 11

I/ Introduction:

It is no doubt that if people want to judge a person is doing economically, they usually first look at his or her income. Similarly, when talking about an economic condition of a country, it is not surprise that people most frequently look at the average income of that nation or in other word, Gross Domestic Product (GDP) per capita. To be more specific, the most commonly accepted method of comparing generalized differences in quality of life on a whole between nations is to use GDP per capita on purchasing power parity (PPP) basis in current international dollars.
In our report, we propose to clarify the usefulness (the reason why economists use GDP per capita as a major measurement) as well as the limitation when using GDP to measure the economic well-beings of a nation.
Before looking at pros and cons of GDP, it is necessary to know how GDP and GDP per capita are defined. The economists definite Gross Domestic Product (GDP) is the market value of all final goods and services produced within a country in a given period of time, while GDP per capita is the GDP of a country divided by its population.
The difference between GDP and GDP per capita is also an...

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