Explain Why Comparing the G.D.P. of Various Nations Might...

Topic 2 Explain why comparing the G.D.P. of various nations might not tell you which nation is better off. Use information from the World Bank website to support your answers. In your explanation refer to the limitations of using G.D.P. as a measure of economic welfare and where possible, refer to the countries in your table above. Due to the very complex methods used in estimating gross domestic product and the sheer enormity of the task, gross domestic product is very necessarily a less than perfect measure of a nation’s economic pulse. Nonetheless, measured gross domestic product certainly plays a very critical role in influencing government economic and social policies. Therefore, there is, quite appropriately, some degree of†¦show more content†¦If a rising per capita GDP does hand in hand with repressive political regime or a rapidly deteriorating environmental quality, people are nothing going to feel better off; by the same token, a country could have no economic growth, yet reduce the hours worked each week. More leisure time could make workers feel better off, even though per person GDP has not changed (Boyes and Melvin 2008). For example, we would like to show the graph of the money flow for three different countries, USA, China, and Japan. This is the GDP for the money flow of each country, as we can see that USA is the richest country in this graph, following by China, and then Japan. However, if we divide the money flow of the each country with the each country’s population, we will get As we can see, USA and Japan people are having about the same wealth of living about 10 times more than Chinese people (The Tree of Mamre 2011). And with a calculation of the Australian GDP and the population according to the World Bank website, Australia has the lower rank of Japan, Australia, after calculation is $42,131(2009) which makes Australia is the 19th out of the world (World Bank record 1990-2010) (World Bank 2012). As shown, the GDP of each country does not mean that the country is rich, it has to be depended both, GDP itself and GDP per population. Monaco has only about 35,407 populations in 2010 however after divided into per capita is $172,676 (World