Real GDP Per Capita Is an Imperfect Measure of Economic

Essay

Real GDP per capita is an imperfect measure of economic well-being because it does not value home production or production in the underground economy, among other factors. Give at least two examples that show why the omission of these types of items will make a difference in evaluating economic well-being. One example should explain how the omissions distort comparisons of economic well-being across countries, and another example should explain how the omission distorts comparisons of economic well-being in the same country over time.