Economics Term Paper Example | Topics and Well Written Essays - 1250 words

Economics - Term Paper ExampleIn their nonable works, storied economic thinkers such as Mishan (1967), Scitovsky (1976) and Arrow et al. (1995) have critiqued gross domestic product, arguing that it is a significant mathematical measure, merely not a comprehensive measure of the economic activity of a nation (Kitov, n.d.).In the y come forwardhful past, GDP economic measure has been considered equal to the social welfare of society. It is evident with the recent adoption of the marge standard of living, used synonymously with GDP. However, this relationship is not buoyed by any significant macroeconomic concept, but has become a habit in the recent past. What is conceivably utmost conspicuous is that a huge bulk of reporters and legislators, irrespective of their party-political inclinations, make very credulous declarations about GDP (vintrova, n.d.). It is therefore not astounding then that we see the majority of people in the world prefer economic produce in terms of GDP gro wth. The same has been supported by an obvious emphasis on GDP growth by global institutions such as the OECD and IMF.Numerous items and events in this life cannot be assessed by GDP, but they are measurable using the cadent of education, health, clean environment, social welfare, freedom and many others. A famous economist started the process of distinguishing the commodities that are comprised in the GDP measure and the capabilities that are omitted from it. His efforts, buoyed by his colleagues efforts lead to the notable discoveries of techniques of supplanting GDP. There are various flaws associated with the GDP measure of economic growth. Key among them it is report that GDP measures average costs rather than the benefits that emanate from the market operations. It is also said that GDP leaves out many external costs associated with the countrys economic growth.In the years between 1950 and 1965, a negative mean welfare trend was experienced in