Understanding GDP

Willa from IMS explains GDP, its components, and its limitations. GDP measures the value of goods and services produced in an economy, but it doesn't account for income distribution, environmental impact, or unpaid services like childcare. While GDP is a useful indicator of economic production, it has significant limitations in measuring overall well-being.

What does GDP stand for?

• Gross Domestic Product

• General Domestic Product

• Global Domestic Product

• Gross Development Product

Which of the following is NOT part of GDP?

• Cars

• Volunteering

• Clothes

• Doctors

How can GDP be calculated?

• By measuring the number of services provided

• By calculating the total population

• By adding up the value of goods and services

• By counting the number of goods produced

What does a higher GDP indicate?

• There is no pollution

• The economy produces more

• Everyone is wealthy

• All services are included

Which of the following is a limitation of GDP?

• It measures all services

• It includes unpaid services

• It accounts for income distribution

• It does not include environmental damage

Why is childcare by a parent not included in GDP?

• It does not generate income

• It is not valuable

• It is too difficult to measure

• It is not considered a service

What is one reason GDP might not reflect true economic well-being?

• It accounts for all volunteer work

• It measures only goods, not services

• It includes all types of pollution

• It does not consider how income is distributed

What is the overall usefulness of GDP?

• It reflects the distribution of wealth

• It shows the environmental health

• It indicates the total economic production

• It measures the happiness of a nation