Economic Statistics Are Not Perfect

question 9

Essay

Economic statistics are not perfect. Explain at least one way in which each of the following statistics as currently calculated in the United States fails to completely or accurately measure the corresponding economic concept (in parentheses):
a. real GDP per person (economic well-being);
b. CPI (cost of living);
c. unemployment rate (involuntary unemployment).

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Definitions:

Manufacturing Sector

The branch of industry involved in the production of goods using raw materials and machinery.

Economy

A system that involves the production, distribution, and consumption of goods and services within a particular geographic region.

Nonprofit Organizations

Organizations that operate for the benefit of the public or a specific group of individuals, rather than for profit.

Informal Organization

An unofficial and interpersonal network of relationships and social interactions within a workplace that significantly influences attitudes, performances, and the organizational culture.