Problem
You are watching a news report with your father. It states that a certain troubled Caribbean nation generates a GDP per capita of $630. Your father knows that U.S. GDP per capita is about $63,000, so he states that we are materially 100 times better off in the U.S. than in the Caribbean nation.
i. Is your father's statement accurate?
ii. What are some examples of production not captured by GDP in both the United States and the Caribbean nation?
iii. Would the exclusion of this type of production affect the measurement of Caribbean output more than U.S. output?