Diskusi 4 bahasa inggris niaga

soal

After studying the fourth Session Topic entitled Real GDP per capita and standard of living and also read
the additional material. Please tell us your opinion on whether real GDP per capita is a good measure of
the standard of living.

Jawaban

Real GDP per capita it`s the best single measure to the living standard and to compare GDP between
countries cause it correlated with many of the other things that we care about such as life
expectancy,happiness, and education.

In effect, we take the value of all goods and services produced within
a country’s borders, adjust for inflation, and divide by the total population.
If average real GDP per capita is increasing, there’s a strong likelihood
that:
(a) more goods and services are available to consumers,
(b) consumers are in a better position to buy them. And while buying more things
 won’t necessarily help us find true happiness, true love, or true enlightenment, it is a     pretty good
indicator of our material standard of living.

Using average real GDP per capita to measure the standard of living has two reason :

-We have a fairly accurate idea of what it is

-it is tough to come up with quantitative measures for things like quality of life,happiness and well-
being.

But real GDP per capita has one problem that GDP per capita misses the distribution of income,for
example in Nigeria there is an economic gap between the people.On the one hand there are many poor
people and the other hand there is some very rich people.The income distribution is uneven even
though the GDP per Capita is at the same value as some countries such as pakistan and Honduras.

In assume,Real GDP Per Capita is a good measure of living standard

Resource : GDP Material and video on the session 4 

BMP ADBI4201