Nt1310 Unit 4

Unit 4 Assignment
1) U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and what does it not tell us, about the well-being of U.S. residents? What are the limitations of the GDP as a measure of economic well-being? Given the limitations, why is GDP usually regarded as the best single measure of a society’s economic well-being? The GDP is defined as the market value of all final goods and services provided within a country in a given period of time. The U.S. GDP being higher than it was 60 years ago shows that the U.S. if producing more goods and services and that the economy is improving. It does not however tell which goods and services are being produced or reflect the unemployment rate. Some limitations of the GDP include people what their output is as well as their down town, the products themselves whether it is the environmental effects or the quality of the products. The GDP is still a important tool because it measures the total output of the particular country. The GDP can be compared to itself from a different period to demonstrate how the economy has improved or worsened.
2) What is an intermediate good? How does an intermediate good differ from a final good? Explain why
These items are the preliminary goods so these are still in process and net yet ready to be sold where as a final good is ready to go on the market and be sold to consumers. If the value of the intermediate good is factored in the GDP then it would be factored twice because this value is already a part of the GDP once the finalized product goes on the market. However say that an intermediate good is not processed or resold as the final product its value must be factored in the GDP. This is only the case if the intermediate goods were not resold within that year. These intermediate goods become part of the company’s