What is the most common method of comparing economic development of a country? What are its drawbacks?
Answers
Answer:
GDP is the right answer
Explanation:
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Answer:
GDP
Explanation:
GDP does not measure is non-marketed goods and does not include illegal activity . If someone were to illegally sell you fireworks, let's say they're banned in your state, and of course they're not gonna report it to the government. It is not capturing even if you were able to measure non-marketed goods and services or illegal activity, it doesn't capture things like pollution. You could have a country whose GDP is growing very very fast, but in the process, the country gets very polluted. Health is another issue. It also does not measure things like wealth inequality. It's not that every person in Luxembourg gets exactly $103,000 worth of goods and services. Depending on the country, there might be more of a middle class or less of a middle class. There might be more wealth inequality or less wealth inequality, and once again that is not captured by GDP.