MACROECONOMICS
INDIVIDUAL ASSIGNMENT 1
NGUYEN TRINH MAI THY
2/5/20
BH1401
Lecturer
Ngo Ha Trang
Date
14.02.2020
INDIVIDUAL ASSIGNMENT 1
1. Explain why GDP is not a perfect measure of well-being?
GDP is not, however, a perfect measure of well-being. Some things that
contribute to a good life are left out of GDP. GDP DOES NOT MEASURE:
housework, leisure time, pollution, income distribution (income gap occurs),
education quality, underground economy, and health care. One of these
things is leisure. Suppose, for instance, that everyone in the economy
suddenly started working every day of the week, rather than enjoying leisure
on weekends. More goods and services would be produced, and GDP would
rise. Yet despite the increase in GDP, we should not conclude that everyone
would be better off. The loss from reduced leisure would offset the gain from
