Judgement and decision making - Essay Example

Gross Domestic Product (GDP) and Well-being Introduction The gross domestic product (GDP) is a concept in economics that will indicate the economic trends and progress of the society regardless of the social and cultural factors of the country. Accordingly, the GDP served as the main indicator among economists and legislators with the economic richness and abundance of the country such as agricultural commodities. In relation to this, the GDP will provide an idea for the government authority to enact laws and promulgation with regard to protecting the economic stability and development of the country.

Hence, the function of GDP focuses on the economic advantage and understanding in order to provide appropriate actions and programs that will ameliorate and develop the economic state of the country for the betterment of the people. Consequently, with the use of GDP as a basis for economic legislations, a number of economists and researchers have implicated the role of GDP in measuring the well being among people (Harvie, Slater, Philip, & Wheatley, 2009; R. Brinkman & J. Brinkman, 2011). The Advantage of GDP in Well Being Samimi and Darabi (2011) noted that the connection of GDP and human well being is evidently seen on the economic situation of the people, whether they are in the best or worst condition.

The GDP determines the revenues and liabilities of the country that flow internally and externally from the economic value of the country. Hence, the identification of the country’s GDP will help people to recognize ways and means to enhance and develop the economic condition of the country and in turn create beneficial effects to the people. Hence, the economic policies that mirror from the GDP will create an advantage and positive interest to the people in order to experience satisfaction and contentment in life (Osberg & Sharpe, 2002).

The Disadvantage of GDP in Well Being van den Bergh (2009) implicated that GDP has a number of lapses when predicting the well being among the general population of the country. Generally, there are still other external factors that could predict the high level of subjective well being among people, and GDP is just of indicators to well being. Particularly, the GDP only focuses on the annual income of the country to forecast the well being of the people; however, the GDP cannot capture the ‘adaptation phenomenon’ that people will experience after they have adjusted to their lifestyle and condition in life.

For example, people who felt happiness after winning the sweepstakes are more likely to fade the feeling of happiness after a period of time (Hilts, 1999). Hence, well being is not more about the monetary value of the country and its policies but there are also elements or factors (e.g., spending leisure time rather than money) that can contribute to the happiness and contentment among individuals (Clements, 2006). Improvement of Using GDP Measure The GDP as a measure of well being has a great influence on the actual results in understanding happiness and contentment among people.

Moreover, GDP has a positive relationship with other elements such as birth rates, literacy rates, educational system and other social factors. However, these social elements and well being are not only be influenced by the increasing or decreasing movement of GDP in the country but also they are determined from another external factors (van den Bergh, 2009). Hence, researchers should provide substantial and sufficient evidence and studies that will coherently determine the significant relationship of GDP on well being through controlling the external factors and develop structured measurement for the GDP.

ReferencesBrinkman, R. L., & Brinkman, J. E. (2011). GDP as a measure of progress and human development: A process of conceptual evolution. Journal of Economic Issues, 45 (2), 447-456.Clements, J. (2006). Nine tips for investing in happiness. Wall Street Journal. Retrieved from http://online.wsj.com/article/SB116027048559986066-email.htmlHarvie, D., Slater, G., Philip, B., & Wheatley, D. (2009). Economic well-being and British regions: The problem with GDP per capita. Review of Social Economy, 67 (4), 483-505.Hilts, P. J. (1999). In forecasting their emotions, most people flunk out.

New York Times. Retrieved from http://www.nytimes.com/1999/02/16/science/in-forecasting-their-emotions-most-people-flunk-out.html?pagewanted=all&src=pmOsberg, L., & Sharpe, A. (2002). International comparisons of trends in economic well-being. Social Indicators Research, 58 (3), 349-382.Samimi, A. J., & Darabi, K. D. (2011). GDP and economic well-being: New evidence from selected developed countries. Information Management and Business Review, 3 (2), 63-67.van den Bergh, J. C. J. M. (2009). The GDP paradox.

Journal of Economic Psychology, 30, 117-135.