The Gross Domestic Product (GDP)- is how a nation’s wealth is determined

The Gross Domestic Product (GDP)- is 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 into account that only a low percentage of individuals can actually benefit from the increased economic output, while the majority cannot afford to purchase most 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 a nation’s citizens.

Describing what products are actually being produced 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 the 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 on the life of the nation’s citizens.