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earned incomes that were reported to the
government for tax purposes. Roughly,
by comparing expenditures with incomes
the government statisticians can get an
idea of what was produced but not sold.
Suppose you paid $1,000 to workers but
only sold goods totaling $40. This difference indicates the production of some
goods that didn’t end up getting sold. GDP Versus Quality of Life
In 2004, the U.S. GDP was more than six
times larger than the GDP of France. Does it
follow that because Americans live in a
country with a higher GDP than the French,
Americans are better off than the French? If
your answer is yes, then you have made the
mistake of equating a higher GDP with
being better off or having greater wellbeing. Greater production of goods and
services is only one of the many factors that
contribute to being better off or possessing
Section 2 Measuring GDP 295 11 (286-309) EMC Chap 11 11/17/05 6:06 PM Page 296 Look at the issue on an individual basis.
Franklin has $1 million in the ba...
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- Winter '14