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Similarly, GDP only considers the goods the sold in the markets. However, it disregards other methods of production such as meal preparation, childcare, family laundry, house cleaning and home maintenance and repair. Economists argue that, if this was included in the total GDP, then it would present a true reflection of the economy.
Another demerit of national income accounts is how GDP overlooks off-books production. This involves the underground economy that entails a market activity that is unofficial because of its illegality or because there is evasion of taxes. On that note, economists point that despite the limited records of the underground economy, it has a considerable contribution to the economy. For example, it is approximated that about 10% of the U.S GDP comes from the underground economy. Therefore, when this is added to the total GDP, it amounts to $1.5 trillion in 2011.finally, GDP does represent all costs. For instance, automobile pollution and oil spills are not included in the GDP transactions (McEachern,
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Her neighbors on the other hand were frantic. Their house was flimsy and built out of straw and bamboos. Johsua Begum on the other hand had a tin roof, with sturdy walls and windows. By being able to gain a loan from the Bangladesh Grameen Bank she managed to make the changes to her house and improve her standard of living.
The total population of China is 1.2 billion or twenty one percent of the world's population. As a result, China has to face many social and economic problems. The major cause of this problem is the fact that Mao Zedong allowed the Chinese families to have as much children as they wanted to have (Cheek, 145).
Other than that, there is also a trade-off between inflation and unemployment. If the unemployment rate is low in an economy, this would lead to a higher inflation rate. This is due to the fact that as more people are hired, i.e. an increase in the demand for labour, wages increase and the employers would in turn pass on the cost of higher wages to the consumers resulting in inflation.
It is an unwanted phenomenon but it is also extremely true at the same time that racism is a curse that exists among us whether we like it or not.It could be summarized that racism is the result of having negative judgments, beliefs, and feelings towards certain identifiable groups and this certainly reached its menacing abyss during the slave trade
Compared to the data from 1919, the top five percent got 22.9 percent of the individual income before taxes. By 1950, the top five percent was receiving 17.9 percent. Additionally, the lowest income group had come to a point where they were receiving
The traditional model used for job creation was the industrial manufacturing strategy. China’s total value export was $1218 billion in 2007, which represents a 26% increase since 2006 (Starmass, 2009). Despite some of these positive factors the Chinese people are still
This is because efficiency reduces when faced with such problems.
According to Easterlin R.A. (2004), happiness is low when self-reported health is poorer. Negative impact of poor health to happiness is
always aims to promote quality and standard of living for its people. It is in this reason that there is a need to try to take a look at the objective of the state to know if there is consistency of it based on the past. It is in this reason that the proponent of this