Question

Name three things you do that contributes to your (or others’) well-being that does NOT show up in GDP.   Why were these things excluded from GDP?   (What part of the definition was not met?)

There are many other alternative measures for well-being.  For this assignment, google “Alternatives to GDP” and provide a link to an alternative measure.   Provide a brief summary of one measure (one to two lines is plenty).  Then describe the strengths and weaknesses of this alternative measure compared to the standard of GDP.   Why do you suppose that economists still continue to use GDP as their primary measure?

Answer 1

1 work done by housewives

2 children taught by parents

3 washing of car by son for his father

They aren't included into gdp for they are not done in lieu of monetary payments.

One alternative is HDI. Link to external website

https://en.m.wikipedia.org/wiki/Human_Development_Index

HDI summarizes achievements of countries in achieving basic needs of humans mainly socio-economic facilities like good health

Pros

It measures progress in many vital socio-economic fields which are excluded by gdp like health, education.

Cons

It is not easy to calculate like gdp

Gdp is still used because growth of output is still the most important factor contributing to development