The Capitalist revolution - Measuring income and living standards - Valuing government goods and services

4 important questions on The Capitalist revolution - Measuring income and living standards - Valuing government goods and services

What goods and services provided by the government are included in GDP that affect our wellbeing?

For example schooling, national defense and law enforcement

Why is GDP a better measure of living standard than disposable income?

GPD includes services, provided by the government, which affect our wellbeing

How are government services valued?

These services are usually not sold, so they are measured by how much it costs to produce them
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What can GDP tell us about the changes over time or differences between countries

The difference in the availability of goods and services.

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