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Economics A Level (DONEEEEEEE)

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Question:

What is the Genuine Progress Indicator and why is it useful? -Are there any downsides?

Author: eric_galvao



Answer:

-The GPI tries to give a Fuller Picture of the Effects of Growth than GDP -It factors GDP in, but also factors the Negative Effects of Growth - Pollution, Child Labour - and also activities that Affects the Quality of Life which GDP doesn't include - Volunteering -GPI is thus Useful for Policy Makers to Increase Overall Welfare, not just GDP. Though it is hard to put a Value or Cost on Volunteering, Pollution etc, so Value Opinions will have to be used -The United States, Canada, Japan, Brazil and more have used the GPI


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