Question

How well do you find economic, businesses and financial news reflects your life?

It's a discussion question

Answer 1

One’s personal finance situation changes with age. As a young earner, Kavish needs to save and invest, but it is likely that his shortterm needs would eat more into his income. By locking his money into longterm tax saving products, he might be making a mistake. He may find it difficult to keep up the investment required, or draw on it when needed. This common mismatch, especially for young investors results in dormant PPF accounts, discontinued subscriptions and missed premium payments. If Kavi .

Economists traditionally use gross domestic product (GDP) to measure economic progress. If GDP is rising, the economy is in good shape, and the nation is moving forward. If GDP is falling, the economy is in trouble, and the nation is losing ground.

GDP is equal to the total monetary value of all final goods and services that have been exchanged within a specific border over a set period of time. For the United States, GDP usually means the dollar-amount value of all purchased goods and services over the course of one year. This includes purchases from private for-profit, non-profit and government sectors. If you buy a roast chicken for $10, GDP increases by $10.

There is a direct and logical sense in which wealth can measure well-being. All economic value is subjective—free market prices are determined by how much better off individuals believe a good or service can make them. Greater access to wealth literally means greater access to things that can improve your life. On the other hand, those who produce wealth in an honest way have literally created the most value for others, at least in an economic sense.

So, in some sense, a higher GDP should equate to greater human progress, because it means more valuable goods and services have been created. Scratch a little deeper, however, and GDP does not even capture this traditional economic value very well.