The real GDP was the key indicator of measure of national progress. Using GDP as a measure of a nation's economy makes sense because it's essentially a measure of how much buying power a nation has over a given time period. oil, etc. focused on real GDP per person as a key measure of a country’s living standard and stage of economic development. On average enough funds to spend on medication per year. 3.1 Discuss alternative measures of GDP. Potential for Higher tax revenues, and therefore government spending on public services like health, education and transport. Advantages of real GDP You can use GDP to examine all economies of the world, from the USA to Somalia. Is GDP a good measure of economic growth? This … Some are then tempted to evade taxes and work in the black economy. “ Improving livings standards is about poor families gaining access to what is available at the time to make comfortable, healthy and rewarding … GDP comprises consumer and government purchases, domestic investments and net exports of goods and services. In 2005, HDI highlights the very large gaps in well being and life chances for Pakistan. However, they can only do that provided they have an established and accurate mechanism to measure GDP value regularly; without that, they don't have any data to compare whether present activity is worth more or less than in the past. The measure is used to see how the population of a nation are doing economically. Curren( 2003) explained ‘’Illiteracy and other deprivations related to lack of basic education are significant obstacles to essentials of good living such as participation in economic activity, political life and decision making within family’’. US, Germany, Britain, Sweden and Australia. Disclaimer: This work has been submitted by a student. Standard of living includes social, cultural, environmental and political factors such as income, poverty rate, life expectancy and access to quality health care to name a few. food, vaccination and good education. GDP can be good indicator of measure of economy living but it is not accurate measure of living standard. The rise in oil prices changes the each commodity price and result into increase in poverty, the 80% increase in prices of maize and 70% increased in price of rice played main link to increase in poverty. Boys and girls born in the UK could expect on average to live to 76.9 years and 81.3 years of age respectively. GDP per capita is more effective than GDP when measuring living standards as total GDP may not be distributed amongst the population, leading to no improvement of the standard of living of the average citizen. But in same way its not same situation in Sierra Leone a baby will survive a life expectancy of just 36 years. The reason that the internationally accepted measure for this “standard of living” index is GDP per Capita, is that the GDP includes regional spending on (inter alia) Health, Roads, Education, Security, etc – and as such gives a far better indicator of standard of living than simply that of household income. GDP is also used as an indicator of a nation's overall standard of living because, generally, a nation's standard of living increases as GDP increases. GDP essentially indicates the society’s standard of living by measuring all the consumption by individuals in a country, all the investment by businesses in the country and all the purchases by the government and foreigners made locally minus the purchases of things made abroad. Education is important for all age group and gender but some countries gender discrimination is high and woman discourages and their potential is not counted because of discrimination, education expenses, and household duties. ), According to (WHO) report that in Japan life expectancy is higher. Many people became ill because of polluted water. GDP AS A MEASURE OF THE STANDARD OF LIVING OF A COUNTRY 3 and at home So. Real GDP is the good measure on economic growth but it fails to measure that how the people are living and are they happy. According to World Bank report says that more than 100 million primary school age children remain out of school. Purchasing power party (PPP) is exchange rates between currencies are in equilibrium and when two countries purchasing power same. 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