Question

Problem 3 In Unit 13 we discussed how to measure GDP per capita and that it is used to measure the quality of life of citizens. This exercise will have you compare and contrast other measures of well being. The Better Life Index was created by the Organization for Economic Cooperation asure of the quality of life in a country and Development (OECD). It lets you design a measi by deciding how much weight to put on each component of the index 1. Use the Better Life Index tool to create your own better life index for a country of your choosing. How does this country score on the topics that are important to you? 2. Rank the countries in the database using your own newly created better life index, and compare it with a ranking based exclusively on income (similar to GDP per capita) 3. For both of these rankings, choose two countries with contrasting rankings and briefly suggest why this may be the case.

How to calculate gdp:

Comsumption + investment + gov. Expenditures + (exports-imports)

We dont include imports because we dont want to include what they’re bringing in

Answer 1

GDP = it is the value of finishing goods and services produced in an domestic territory / economy of country, during the financial year is known as Gross Domestic Product ..

Formula to calculate GDP by expenditure methods = C+I+G (X-M) ..where the C=consumption , I=investment ,G=gov.expenditure , X=xports and M=imports

a)..the important topics for the better life index for our country is Education, Health ,Employment ,Safety , Family etc and the country can score in these topics by removing Unemployment ,focusing on better infrastructure for education and health ,drafting better policies for safety and family.

b)..ranking of the countries based on income are as follows ..

1. Canada = GDP is $1.7 trillion
2. Sweden = GDP is $538.0 billion
3. Denmark = GDP is $324.9 billion

c)..Two countries of contrasting ranking are Australia (rank 2 ) and China ( rank49 ) this contrast exists because of difference in Population , GDP , no.of people Employed ,Education rate and lastly difference in the SATISFACTION with in people of that country.