Question

The Gross Domestic Product or GDP is the monetary measure production of final goods and services within the boundary of the United States in a financial year or specific period. The GDP tells us if the economy is expanding due to producing more goods and services or contracting due to less output. Anything that it is built in the United States contributes to the figures instead of abroad.

The Gross Domestic Product or GDP does not measure the quality of the environment, What would you suggest would be a better methodology to address the economy in the calculation of GDP?

Answer 1

Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. Mostly it is calculated annually.

Whereas Gross national product (GNP)Domestic Product (GDP) plus net factor income from abroad.

GDP looks for the amount of economic activity within a nation’s economy, while GNP looks at the value of the economic activity generated by the nation’s people. This means that GNP will count the economic activities of expatriates and other citizens outside the country’s borders but GDP will not, and that GDP will consider the activities of non-citizens within those borders, but GNP will not.

Other than GNP another better measurement is the Inclusive Wealth Index calculates all assets which human well-being is based upon, including manufactured, human and natural capital.