Key Concepts and Summary

Key Concepts and Summary

GDP is an indicator of a society’s standard of living, but it is only a rough indicator. GDP does not directly take account of leisure, environmental quality, levels of health and education, activities conducted outside the market, changes in inequality of income, increases in variety, increases in technology, or the (positive or negative) value that society may place on certain types of output.

Glossary

standard of living

all elements that affect people’s happiness, whether these elements are bought and sold in the market or not