Question

Advisor A. Boom recommends an alternative measure to evaluate the performance of the nation’s economy, such as the Genuine Progress Indicator (GPI). Offer an argument in favor of one or the other (as president, it’s your choice…)..

Answer 1

The genuine progress indicator is something that is an alternative to GDP and this measure can be beneficial to the economy as it also accounts for the externalities like the pollution happening in the economy and this is a benefit because it isn't a sign of environmental positivity if there is more pollution and even if the gross domestic product is increasing and that is the reason why there must be some indicator that accounts for the externalities as well and the genuine progress indicator perfectly balance the functions of externalities and outcomes so that the recommendation is apt here