Question

Explain Per Capita Real GDP as Indicator of Economic Welfare??​

Answer 1

hlo friend!

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Answer:-

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Per Capita Real GDP can be taken as indicator for economy. But by itself is not an adequate indicator.

There are many reasons are :-

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1_____

----->>>Many goods and services contributing economic welfare are not included in GDP Or Non -Monetary exchanges..

2_______

--------->>>Though externalities are not taken into account in GDP. they affect welfare..

3_________

------->>>Change in the distribution of income GDP may affect welfare.

4__________

---------->>>All products may not contribute equally to economic welfare.

5________

--------->>>Contribution of some products may be negative..

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hope help u!!

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Answer 2

Hello ,

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Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a period of time, often annually GDP (nominal) per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries therefore using a basis of GDP per capita at purchasing power parity (PPP) is arguably more useful when comparing differences in living standards between nations.

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