Compare and contrast the expenditure versus income approach to GDP. Why are the results the same? What are some of the drawbacks of using GDP to measure economic well-being?
While researching the drawbacks of GDP, we uncover shortcomings. For example, the GDP number does not take into consideration leisure time or human health costs. If you had to create an instrument that measured the prosperity of a nation, what would be the three most important aspects of the society you would include? For example, would it be: 1) total earnings of the country, 2) environmentally friendly factories and equipment, 3) the health of the population? Discuss why you made these choices.