Evaluating GDP and GNI as Measures of Well-being
Measuring Economic Activity and Illustrating Its Variations
AO3
Syllabus requirement
Evaluates the usefulness and limitations of GDP/GNI for assessing living standards and economic progress.
Assessment objectives
AO3 Synthesis and Evaluation
Summary
This topic explains how GDP and GNI statistics are used to assess economic performance and material living standards. It distinguishes real measures (adjusted for price changes), per capita figures (adjusted for population), and PPP adjustments (accounting for cost-of-living differences), and explains why these indicators are useful yet incomplete measures of overall well-being.
