Nama : Erni Munafiah

NIM : 042963757

Prodi : Manajemen S1- UT-Surakarta

Makul : Bahasa Inggris Niaga

A. GDP is a perfect measure of welfare

Do you agree or disagree with the statement?

Groos domestic product (GDP), a measure of economic activity in a country.

It is calculated by adding the total value of a country’s annual output of goods and services. GDP =
private consumption + investmen + public spending + the change in inventories + (exports - imports).
disagree, with the statement, a country that adheres to a global economic system is indicated by its increasing
economic growth calculated from the average global economic growth per year. whether GDP is a perfect
measure of welfare seen from economic growth is of course not directly proportional to the welfare of the people.
On the other hand, the real indicator of people's welfare is not seen from economic growth but GDP which
calculates the consumption rate of investment and the increase in exports and imports. From the data that I read
and sources from references by considering daily intuition, the rank of the prediction per capita does not really
describe the state of welfare in terms of the average income of people or families per month or GDP.

The average income of each person or family is not able to describe GDP, in fact there are many people
whose income is far below that figure because of GDP some economists have different considerations
from measuring people's welfare not from GDP.
The use of BPD GDP to measure welfare is that there is no explanation of the income gap between
people or citizens because GDP is calculated per capita from the total income divided by the total
number of people in a country meaning that the GDP per capita figure is an average number therefore
the GDP figure does not show any variation or income gap, in other words, people with low incomes
can quite a lot be covered by people with very high incomes. Therefore, in many countries the GDP
tool is usually accompanied by another tool to measure the gap called the Gini ratio so that we can
know what to measure people's welfare.

Source : ADBI4201/Bahasa Inggris Niaga/MODUL4(4.5), https://binus.ac.id/character-

building/2020/05/kesejahteraan-rakyat/, https://www.republika.co.id/berita/o66xej1/ketika-indikator-pdb,