Comment on the Following Statement: the Level and Growth Rate

question 32

Essay

Comment on the following statement: The level and growth rate of real GDP per capita can be a misleading indicator of development.At the same time, countries that experience sustained increases in real GDP per capita over time will tend to be more developed.

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Definitions:

External Failure Costs

Costs incurred when a customer receives a defective product.

Appraisal Costs

Costs related to identifying defective units before they are shipped to customers.

Optimum Quality Level

The level of quality at which the total cost associated with quality management (including prevention, appraisal, and failure) is minimized.

Balanced Scorecard

A set of performance measures that provide a comprehensive view of the organization by recognizing the goals of shareholders, the satisfaction of customers and employees, and methods to improve the firms internal processes.