1 The GDP is the US If ou were redesigning the GDP measure w

1. The GDP is the US. If ou were redesigning the GDP measure, what are curreny not coume the GDP would you include not necessarily an accurate measure of the standard of living or quality of life in Were redesigning the GDP measure, what two activities that are now counted in duexclude, and what two activities that are currently not counted would you c--and explain why for each of the four activities you cite may be a better store of value than US money, but would function as a poorer medium account than US money.\" Do you agree with this statement? If yes of exchange and unit of explain why you agree. If no, explain why you disagree.

Solution

1) GDP defines the economy of a country in a financial year but it will not show the standard of living of people in an economy . GDP will show the country as a whole where rich and poor both will be there, so it will not show the standardd of living of people as it is mix of all groups.We cannot change anything in GDP to calculate the value of their standard of living but we can follow a step that is being followed in India. In India they have created a id card Aadhar where everyone will get it done by submitting proofs of birth and some other certificates. After that this Aadhar card is being connected to bank accounts, mobile numbers, land transactions everything. Aadhar is mandatory to be submitted for everything .So using this Aadhar we will know the assets and liabilities of any person. So by calculating his income , assets and liabilities we can consider him whether he is below or above poverty line. So using this method we can know how many people are below and above poverty line.

2) Gold cannot be used as a standard as the value of it varies from market to market and gold cannot be used as a standard to measure a countries economy. During olden days gold is used as a standard but it does not got any effective results of economy. So people considered the US dollar as standard to calculate their economy during that time which is followed till now. The main reason for taking US dollar is that it is the worlds powerfull country with a strong hold on everything. It is the most developed country in every way. So that one thing made all the countries to take US dollar as exchange rate standard.

I disagree with the statement as in todays times nobody are bothering about gold or its value as it is just one ornament which can be bought by money. Gold value may depreciate over time but money does not.