Answer to Question #235539 in Macroeconomics for Ross

Question

Robert Kennedy’s remarks about the shortcomings of measures of national output also contained the following: “The Gross National Product includes air pollution and advertising for cigarettes, and ambulances to clear our highways of carnage. It counts special locks for our doors, and jails for the people who break them. GNP includes the destruction of the redwoods and the death of Lake Superior.” List ways that the accounts can be redesigned to incorporate these effects.

Answer 1

The account may focus much on the end results. It should highlight on the specific issue that brings about adverse effect. For instance, the account should take on insecurities which are witnessed globally as a gross national product. Aspects such as ambulances to clear highways do not impact the economy much.