Question

3. Do you think GDP is a good measurement for our standard of living? Why or why not?

4. What do you think the biggest challenge to economic growth? How can wealthier nations help poor

countries raise their standard of living? Be brief and concise.

Answer 1

GDP that is the production of final goods and services with the boundary of a country in a financial year

It is generally measured on quarterly or yearly basis

Standard of living is the the GDP per capita

GDP per capita is also called ratio of GDP to the total population of the country

But many economists thinks that standard of living is not a perfect economic indicator for the economy because it lacks so many important factors like Gini coefficient or inequality index, happiness index, carbon footprint index which actually tells that how the people of the country and living

Some of the big challenges of economic growth are-

Unemployment

Lack of education

Lack of technology

So wealthier nation can help the developing and underdeveloped nation in promoting them with good FDI that is foreign direct investment, infrastructures, human resources, technology spillovers etc