Is the pure maximization of GDP a good economic goal? If so, explain why. If not,...

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Is the pure maximization of GDP a good economic goal? If so, explain why. If not,...

Is the pure maximization of GDP a good economic goal? If so, explain why. If not, list TWO reasons why not.

business economics

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Answer 1

Answer #1

GDP is predominantly the domestic production that has taken place in an economy for the period

GDP=C+I+G+NX

The reason it's not good as an economic goal -

1. GDP does not include household work or even underground economy hence the estimate of GDP is distorted

2. It does not take HDI or well being of citizens into consideration which plays a very important role in the workplace and for its productivity

3. GDP does not include the harm one induces to the environment because of the production and consumption activities like increased waste or even polluted water from firms into rivers.

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Answer 2

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