Commerce Exam  >  Commerce Videos  >  Economics Class 12  >  GDP and Welfare: Introduction

GDP and Welfare: Introduction Video Lecture | Economics Class 12 - Commerce

86 videos|334 docs|54 tests

Top Courses for Commerce

FAQs on GDP and Welfare: Introduction Video Lecture - Economics Class 12 - Commerce

1. What is GDP and how is it calculated?
Ans. GDP stands for Gross Domestic Product and it is a measure of the total value of all goods and services produced within a country in a specific time period. It is calculated by adding up the value of all final goods and services produced, including consumption, investment, government spending, and net exports.
2. How does GDP impact the welfare of a country?
Ans. GDP is often used as an indicator of a country's economic well-being, but it does not directly measure the overall welfare or happiness of its citizens. While a higher GDP generally implies higher incomes and a better standard of living, it does not capture factors such as income inequality, environmental sustainability, or quality of life indicators which also contribute to welfare.
3. Can a country have a high GDP but low welfare?
Ans. Yes, a country can have a high GDP but low welfare. GDP only measures the economic output and does not take into account factors such as income distribution, social inequality, or the quality of healthcare and education. Therefore, a high GDP does not guarantee that the benefits of economic growth are evenly distributed or that the population's overall well-being is high.
4. Are there any limitations to using GDP as a welfare indicator?
Ans. Yes, there are limitations to using GDP as a welfare indicator. GDP fails to consider non-market activities such as unpaid work, household production, and volunteer work. It also does not account for income inequality, environmental degradation, or the value of leisure time. Additionally, GDP growth can be driven by unsustainable practices or activities that do not contribute to long-term well-being.
5. What are some alternative measures of welfare besides GDP?
Ans. There are several alternative measures of welfare besides GDP. Some examples include the Human Development Index (HDI), which considers factors such as life expectancy, education, and income; the Genuine Progress Indicator (GPI), which accounts for social and environmental factors; and the Better Life Index (BLI), which assesses well-being based on housing, income, jobs, education, community, environment, governance, health, life satisfaction, safety, and work-life balance. These measures attempt to provide a more comprehensive understanding of a country's welfare beyond just economic output.
86 videos|334 docs|54 tests
Explore Courses for Commerce exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

Semester Notes

,

Viva Questions

,

Exam

,

GDP and Welfare: Introduction Video Lecture | Economics Class 12 - Commerce

,

pdf

,

GDP and Welfare: Introduction Video Lecture | Economics Class 12 - Commerce

,

Previous Year Questions with Solutions

,

Extra Questions

,

study material

,

MCQs

,

mock tests for examination

,

GDP and Welfare: Introduction Video Lecture | Economics Class 12 - Commerce

,

Free

,

ppt

,

Sample Paper

,

video lectures

,

past year papers

,

Summary

,

practice quizzes

,

Objective type Questions

,

Important questions

,

shortcuts and tricks

;