Gross Domestic Product (GDP)- is the how a nation’s wealth is determined. In a given year, all services produce and goods sold are used to give the total market value of the economy’s performance. When it comes to income the Gross Domestic Product does not take in account that only a low percent of individuals can actually benefit from increased economic output, while majority cannot afford to purchase must goods and services. The Gross Domestic Product is not the most accurate method to measure the overall economic market due it to not taking in account gray and black markets as well as self-production. Gross Domestic Product does not also measure the happiness of nation’s citizens. Describing what products are actually being produce in a nation’s economy is another shortcoming that the Gross Domestic Product does not keep track of.Income inequality is another entity that Gross Domestic Product cannot determine. Another shortcoming of the Gross Domestic Product is quality of the environment. An example of bad quality of the environment is the air pollution that is produced by automobiles which will have an negative effect of on the life of the nation’s citizens.
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