Real GDP Per Capita Is an Imperfect Measure of Economic

question 108

Essay

Real GDP per capita is an imperfect measure of economic well-being because it does not value home production or production in the underground economy, among other factors. Give at least two examples that show why the omission of these types of items will make a difference in evaluating economic well-being. One example should explain how the omissions distort comparisons of economic well-being across countries and the other example should explain how the omission distorts comparisons of economic well-being in the same country over time.

---

Definitions:

Need for Structured Knowledge

A cognitive requirement where individuals seek organized and coherent information to understand complex phenomena or situations.

Trait of Disidentification

A psychological process whereby individuals disconnect their self-esteem from outcomes in areas where they have experienced failure or discrimination.

Terror Management Theory

A psychological perspective suggesting that the fear of death drives individuals to adopt cultural values and beliefs for a sense of immortality.

Symbolic Racism

A form of racism expressed through indirect means or symbols rather than overt actions, often reflecting deep-seated prejudices and cultural stereotypes.