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Unformatted text preview: nk, owns a
large home, drives a luxury car, and works
70 hours per week. He has little time to enjoy
nature or his family. In contrast, Harris has
$100 in the bank, owns a small home, drives
an old car, and works 30 hours a week. He
has much time to enjoy life. Who is better
off—Franklin or Harris? In terms of expensive goods, Franklin certainly has more than
Harris; in this one respect, Franklin benefits
more than Harris. In terms of leisure time,
though, Harris is better off than Franklin. In
overall terms—taking everything into
account—we cannot say who is better off.
Similarly, we simply cannot say whether
Americans are better off than the French on
the basis of their GDPs. All we can say for
sure is that Americans live in a country in
which greater production exists. Being better
off takes into account much more than simply how much output is produced.
In assessing a country’s GDP, its population also must be considered. Suppose country X has double the GDP of country Y, but
its population is three times as large. This
would mean that on a...
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This document was uploaded on 01/16/2014.
- Winter '14