• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Discuss to what extent a GDP per head is the best measure of standards of living.

Extracts from this document...


Discuss to what extent a GDP per head is the best measure of standards of living. GDP per head could be good for measuring the standards of living but to a certain extent, for example if the GDP per head is counted across London or some other large capital city then take the average then it is obvious that it is going to be a number that is not going to be telling the complete truth and probably lowering the standards of living for many parts of that city, so I think that for the first thing is that you actually have to measure the GDP per head either by different boroughs or it might work where most of the people have ...read more.


be bringing down the average and as in most towns there are more low paid people than there are extremely rich people. This way is limited due to the fact that you have to know how much money is spent on consumption of goods and it is moderately hard to keep track of everything that you buy and how much money you spend on things. There are limitations like non-market output like subsistence farming, the shadow economy like the black market in a country, data collection could be limited because of internet sales and awkward exchange rates which could interfere. There are different ways of measuring the standards of living of the people and that could be in a similar way to getting the GDP per head but this one takes only one factor of the GDP and that's income. ...read more.


Therefore you can see that if I try to use different methods to work out the standards of living it is still practically the same way as working out GDP per head and therefore you can say that it is the best way of working out the standards of living but to an extent, and this I mean by the fact that it is virtually impossible to work out all the costs of living. I think that working out the income for an average person is easier than their consumption, because it is very hard to keep track of everything that you buy. Peter Tsarkov ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. what are the problems of trying to compare living standards

    countries in a any of all of the following: The level of unrecorded activity, such as 'black economy' the black economy is a hidden sector of the economy where private cash transactions go unreported and is also hidden from the government on which taxes are not paid.

  2. Differences between the standards of living in Slovakia and The Hague

    If the people of the nation are happier, they will work harder. If the standard of living is high, most likely the unemployment rate will b very low so the economy will increase and the national income will increase. The Research and Questionare: For our Questionnaire, we have gone to Centrum and have interviewed people.

  1. As an economist how would you compare living standards in the UK with those ...

    The legislation in both countries, the right to vote and political freedoms the British of Iraqis enjoy or don't. Crime rates, health and safety at work, number of televisions and radios per household and similar information would also need to be taken into account.

  2. Discuss the proposition that the 'state-market condominium' is the best focus for IPE.

    Public domain is the most important and the political process aims at ensuring that politician serve the 'public good'.4 According to Balaam and Veseth's ideas towards states and markets, when people say about states, they usually mean the political institutions of modern nation-state, a geographic region with a relatively coherent and autonomous system of government that extends over that region5.

  1. How is GDP measured and what are its limitations as a measure of the ...

    Other adjustments to the output figures are required in order to obtain a more accurate value of GDP using this method. These include: * Stocks - it is very important only to include the values added in the particular year in question and not to include stocks carried over from previous years.

  2. How is GDP measured and what are its limitations as a measure of the ...

    However, there are flaws to this method. For example, certain transfer incomes such as the Jobseeker's Allowance are not included as they do not contribute towards economic activity. Both the income and expenditure approaches give the same value when the GDP is calculated because the costs incurred by firms during

  1. Toyota Motor Company Limited

    Tundra, which is built at its Indiana plant, Toyota Motor Manufacturing, Indiana, Inc. (TMMI). Production in Alabama will get under way in 2003 and plans call for an annual output of 120,000 engines. Toyota has also decided to begin building the RX300 at its production base in Canada, Toyota Motor Manufacturing Canada Inc.

  2. The Changing Standards of Living During the 1950's.

    Also money was given to the local councils to build council houses, which could be rented out to people. Then the Governement managed things like new towns and shopping centres. Things were starting to improve but there was still a long way to go.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work