Chapter 10 Reflection

1. What is the difference between an intermediate good and a final good?  Why do we care?

The difference between intermediate goods and final goods are that intermediate goods are used to create final goods, and the final goods are what counts towards our GDP, intermediate goods do not count toward our GDP. We do care about this because we only want to count a good once for our GDP, otherwise it will throw off the GDP.

2. Is GDP a good measure of well-being?  Why or why not?  What is missing?  Has what is missing changed over the years? (For example, if improvements in products are not counted, is that more important now than it was a few decades ago?)

GDP per capita is a great measure of well being, countries with a higher GDP per capita tend to have nicer homes and longer life expectancies.

3. What do you think of other measures such as Gross National Happiness pr Gross Progress Indicator?

I think that Gross National Happiness as an indicator of happiness does not work as well as GDP per capita. The more money someone has, the happier they will be, and GDP per capita measures exactly everyones income in an economy.