Explain why each of the following should be taken into account when GDP data are used to compare the 'level of well-being' in different countries:

(a) Population levels

(b) The distribution of income

(c) The amount of production that takes place outside of markets

(d) The length of the average work week

(e) The level of environmental pollution

a) The reason for considering population level, when GDP data are used to compare the well being in countries

concept intriduction:

Gross Domestic Product (GDP) : it is the money value of final goods and services produces in a year.

Reason: Two countries may have same resources but the country with more population may not be better using the resources as compare.

b) The reason for considering distribution of income, when GDP data are used to compare the well being in countries.

concept intriduction:

Gross Domestic Product (GDP) : it is the money value of final goods and services produces in a year.

Reason: when a disproportionate share of a nation's income is earned by a small minority of households; for example, when the top 10/%10%10, percent of households earn 80/%80%80, percent of the total income in a country, there is a high degree of income inequality; GDP does not account for income distribution in any way

c) The reason for The amount of production that takes place outside of markets, when GDP data are used to compare the well being in countries.

concept intriduction:

Gross Domestic Product (GDP) : it is the money value of final goods and services produces in a year.

Reason: economic activity that takes place in the informal sector (from babysitting, to lawn mowing, to illegal drug sales), sometimes called the gray market or the black market economy; non-market transactions are not recorded, taxed, or officially monitored by the government. Because of this, the output and income generated is not included in the calculation of a nation's GDP

d) The reason for The length of the average work week, when GDP data are used to compare the well being in countries.

concept intriduction:

Gross Domestic Product (GDP) : it is the money value of final goods and services produces in a year.

Reason:There is evidence that work affects health. A quick look at the data from the fourth European Working Conditions Survey (EWCS) reveals that around 30% of workers in the European Union think that their health is at risk because of their work, and that the larger the number of hours worked the greater is the share of employees who agree with it

e) The reason for The level of environmental pollution, when GDP data are used to compare the well being in countries.

concept introduction:

Gross Domestic Product (GDP) : it is the money value of final goods and services produces in a year.

Reason:Air pollution is regarded as one of the most serious public health threats facing by countries throughout the world [9]. Results from the studies about health and air pollution have evidenced that exposure to pollution is associated with a very wide range of adverse health or health-related outcomes such as cardiovascular diseases, heart attacks, decreased lung function, chronic non-cancer lung disease, chronic bronchitis, increased respiratory symptoms, asthma exacerbations, emphysema, earlier death from cardiovascular as well as respiratory causes, and cancer, especially lung cancer