BUKU JAWABAN TUGAS MATA

KULIAH TUGAS 2

Nama Mahasiswa : ALYANDA HABIBIE

Nomor Induk Mahasiswa/ NIM : 043145149

Kode/Nama Mata Kuliah : ADBI4201/BAHASA INGGRIS NIAGA

Kode/Nama UPBJJ : 71/SURABAYA

Masa Ujian : 2023/2024 Ganjil (2023.2)

KEMENTERIAN PENDIDIKAN DAN KEBUDAYAAN

UNIVERSITAS TERBUKA
The number of GDP can always tell whether a country is prosperous or not. Do you
agree or disagree to the statement?

GDP (Gross Domestic Product) is a measure of the monetary value of all goods and services produced
in a country during a certain period, usually one year. GDP is often used as an indicator of a country's
economic growth and prosperity. However, can GDP always describe the welfare and quality of life of the
people in that country? In this essay, I will state that I do not agree with this statement, because GDP has
several limitations and shortcomings that make it unable to reflect all important aspects of human progress.
One of the limitations of GDP is that it does not take into account the social and environmental costs that
arise from economic activity. For example, GDP does not reduce the value of environmental damage, air
pollution, or the decline in natural resources caused by the production and consumption of goods and
services. GDP also does not take into account the value of activities that are not included in the formal
market, such as household work, volunteer work, or the informal economy. This means that GDP can provide
misleading information when it results from economic collapse—such as a car accident or natural disaster—
rather than actual productive activity.
Apart from that, GDP also does not take into account the distribution of income and wealth among
society. GDP only measures the average per capita income of a country, without considering how that income
is divided among different social groups. This means that GDP can show high figures even though there is
great inequality and poverty in the country. GDP also does not take into account non-monetary factors that
influence human welfare and happiness, such as health, education, freedom, human rights, the environment,
political participation and social relations.
Therefore, GDP is not a perfect measure to describe the prosperity or well-being of a country. GDP only
measures a small part of human progress, namely the economic aspect only. However, there are many other
aspects that are also important to measure and pay attention to, such as social, environmental, political,
cultural and spiritual aspects. For this reason, new measurement tools are needed that can include cost
variables in the calculations. One example of such a new measurement tool is the GPI (Genuine Progress
Indicator), which is designed to correct the shortcomings of GDP by including variables such as pollution,
natural resources, health, education, crime, and income inequality.
Thus, I do not agree with the statement that GDP figures can always describe whether a country is
prosperous or not. I think that GDP is too simple and inaccurate a measure to describe the quality of life of
people in a country. I hope that policymakers, investors, and businesses can use other, more comprehensive
and holistic measurement tools to understand a country's economic health and social progress.