Question

What does GDP not tell us about the economy?

Short answer

The level of environmental purity, disease rates, level of inequality is not measured by GDP. It doesn't track if life expectancy or infant mortality rates have risen or fallen, how each person is doing in the economy, and how many individuals in a country can read or write. It does not assess the degree to which a society is unequal.

Step-by-step solution

Step 1. Definition

The Gross Domestic Product (GDP) is a measure that evaluates a country's economic prosperity and standard of living.

Step 2. Explanation

1. The pattern of economic growth is not indicated by GDP.
2. It does not reflect how each person is doing in the economy.
3. GDP does not account for the factors that influence one's standard of living.
4. The level of environmental cleanliness is not measured by GDP.
5. It doesn't track disease rates, or if life expectancy or infant mortality rates have risen or fallen.
6. It does not assess the degree to which a society is unequal.
7. It does not take into account how many individuals in a country can read or write.