Standard of Living Essay Example | Topics and Well Written Essays - 250 words

Standard of Living - Essay ExampleSimilarly, gross domestic product only considers the goods the sold in the markets. However, it disregards other methods of production such as meal preparation, childcare, family laundry, house alter and home maintenance and repair. Economists argue that, if this was included in the total gross domestic product, then it would present a accredited reflection of the economy.Another demerit of national income accounts is how gross domestic product overlooks off-books production. This involves the underground economy that entails a market use that is unofficial because of its illegality or because there is evasion of taxes. On that note, economists point that despite the limited records of the underground economy, it has a considerable contribution to the economy. For example, it is approximated that about 10% of the U.S GDP comes from the underground economy. Therefore, when this is added to the total GDP, it amounts to $1.5 trillion in 2011.finally, GDP does represent all costs. For instance, automobile pollution and oil spills are not included in the GDP transactions (McEachern,