Problems with GDP

Question 1

What are the problems with using GDP as a measurement of SOL?

Answer 1

Doesn’t account for:
shadow economy
domestic production
population size
inequality
net property income from abroad

Question 2

What should population size be measured in?

Answer 2

GDP per capita

Question 3

What should net property income from abroad be measured in?

Answer 3

GNI per capita

Question 4

What is the problem with inequality?

Answer 4

GDP is only an average

Question 5

Where is the shadow economy more relevant?

Answer 5

developing economies

Question 6

What do PPPs do?

Answer 6

adjust for differences in the costs of living