NAMA : IMAM AFANDI

NIM : 044090546

Untuk TUGAS 2 ini anda akan diberikan pilihan topik untuk membuat sebuah
essay dengan panduan sbb:

1. Buatlah essay dengan paling tidak 3 paragaph (1 buah paragraph awal, 1 buah paragraph

isi dan 1 buah paragraph penutup).

2. Tulislah jawaban anda pada rentang antara 150-200 kata.

3. Jawaban essay diketik dan dikirimkan ke Forum Tugas dalam bentuk Word.

GDP is a perfect measure of welfare

Do you agree or disagree with the statement?

I disagree With the Statement about GDP is a perfect measure of walfare.

GDP is not a perfect measure of well-being. Some things that contribute to a good life
are left out of GDP. One is leisure. Suppose, for instance, that everyone in the economy
suddenly started working every day of the week, rather than enjoying leisure on weekends. More
goods and services would be produced, and GDP would rise. Yet despite the increase in GDP,
we should not conclude that everyone would be better off. The loss from reduced leisure would
offset the gain from producing and consuming a greater quantity of goods and services.

Because GDP uses market prices to value goods and services, it excludes the value of
almost all activity that takes place outside markets. In particular, GDP omits the value of goods
and services produced at home. Another thing that GDP excludes is the quality of the
environment. Imagine that the government eliminated all environmental regulations. Firms could
then produce goods and services without considering the pollution they create, and GDP might
rise.
We can conclude that GDP is a good measure of economic wellbeing for most but not all
purposes. It is important to keep in mind what GDP includes and what it leaves out.