Chapter 3R, Problem 1CTQ

To determine

The question requires us to explain the details GDP tells and does not tell about the nation.

Explanation of Solution

GDP is the measurement of final goods and services produced in an economy in a financial year.

GDP tells one about the growth in national income, level of production, and per capita income (with the help of population growth). It indicates the economic growth in a nation in quantitative terms, but it doesn’t say anything about the quality or health of an economy because GDP doesn’t include the economic state of education, health, banking, insurance, technologies, research & developments, and so on. The value of GDP even doesn’t include the work done by housewives, the value of intermediate goods, and underground economic activities.

So, by seeing the numerical value of GDP, the economic and social health of a country can’t be determined.