The major advantage of GDP per capita as an indicator of standard of living is that it is measured frequently, widely, and consistently. In 1990s United Nations created the human development index (HDI). No plagiarism, guaranteed! According to the survey Nigeria and Thailand have the world largest black economies accounting for more than 70% of GDP. GDP doesn’t account inequality: some very wealthy businessmen may make the GDP of a country high yet the majority of the country may be backward and in poverty. We also need to be careful when looking at growth and what it tells us about an economy. According to survey in 2005, India had population of approx. (www.ftb.bis.gov cited on 27th May 2008). Not only can GNP be used to compare living standards across countries, it can also be used to compare the living standards across periods of time within the same country - assuming enough data exists! The more trees we fell, fish we catch, fossil fuels we burn, greenhouse gases we emit, the more the GDP increases. The pollution increased 70% in lake and river and sample test. Data Source: www.bized.co.uk cite on 21st May 2008 and World Bank development indicator 2007, Washington D.C. (www.hdrstats.undp.org cited on 21st May 2008), Crime, war, pollution, tobacco smoking, and car accidents all cause people to spend money – and so they all increase the GDP. According to recent report by the United Nations Development Programme (UNDP) May, 2008, Turkish youth hit by unemployment. Google Classroom Facebook Twitter. According to official US report (2007) says that America has dropped from 11th to 42nd place in 20 years being a richest country in the world. The GDP per person tells us the income and expenditure of the average person in the country. In an increasingly competitive knowledge based surroundings, primary education must be the priority and it leads to higher levels of education (http://ddp-xt.worldbank.org cited by 24th May 2008). Narrow indicator that fails to show quality of life, standard of living, happiness, health care, political freedom, unemployment and quality of goods and services. GPI counts the beneficial progress as positive and destructive activates as negative. Turkey economy boosts cause of foreign debts. GDP essentially indicates the society’s standard of living by measuring all the consumption by individuals in a country, all the investment by businesses in the country and all the purchases by the government and foreigners made locally minus the purchases of things made abroad. 3.1 Discuss alternative measures of GDP. For the long life and leisure time as if we have more leisure facilities we live better, that never count in GDP. Narrow indicator that fails to show quality of life, standard of living, happiness, health care, political freedom, unemployment and quality of goods and services. (Parkin el at 2005) The black economy never comes in revenue, i.e. GDP per capita is a good indicator of living standards, as a rise in GDP per capita signals a growth in the economy and an increase in living standards as people are spending more. GNI per capita reflects the total market value of goods and services in the economy. While GDP Gross Domestic Product (GDP) Gross domestic product (GDP) is a standard measure of a country’s economic health and an indicator of its standard of living. If the domestic price level of any country increase, then exchange rate will be depreciate to return PPP then that country will experience inflation. It is measured extensively as GDP is offered for many countries worldwide, permitting comparisons to be made. Up Next . On average enough funds to spend on medication per year. "Time": Is GDP An Obsolete Measure of Progress. Education is necessary and fundamental part of all societies and globally competitive economies. It is calculated by dividing the country's GDP by its population, which better allows comparison of GDP between countries. (www.moe.gov.pk cited on 22nd May 2008). If we see real GDP of Romania in 2004, it comes in high human developed countries but real GDP fail to count the clean water source for the people. (http://ddp-ext.worldbank.org), Combined gross enrolment ratio for Primary, secondary, and tertiary Education, Source: Human Development Report 2007/2008 (www.hdrstats.undp.org). The term "gross domestic product" (GDP) refers to the total value of a nation's goods and services produced within a year -- in other words, the total size of a nation's economy. (The Guardian, 13th August, 2007), Infant mortality rate( per 1000 live births) (2005), Life expectancy at birth (Years) 2005 Male, Life expectancy at birth (Years) 2005 Female, (www.worldbank.org cited on 21st May 2008) (United Nation, ‘Economic and Social survey of Asia and the pacific 2007’). So, a major advantage of GDP is that it gives a clear indicator as to how well (or badly) … GDP is relatively easier to measure than wealth. Real GDP is a better measure of the standard of living than nominal GDP. 1/2016. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKDiss.com. If the arms are sold and used within the country itself, overall social welfare will most likely decrease. The major advantages to using GDP per capita as an indicator o Many people became ill because of polluted water. 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