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Chapter 10 Reflection

An intermediary good is one that is used in the production process of a final good. For example, cloth used to make clothing, or drywall and plumbing used to construct a house. The cost of the intermediary good is reflected in the market price of the final good.

GDP can give an idea of economic health, but it has its own shortcomings. The informal economy, ranging from babysitting for cash to trading in-kind services, is not included in the measurement. If someone grows their own food, that is also not reflected. So while people may be benefiting from the activities, there is no way to attach a number to it.

The idea of Gross National Happiness is intriguing. Trying to measure overall quality of life by the number of dollars in circulation does not always give an accurate idea, because various classes or regions of society do not benefit equally. However, using more of a philosophical approach can more accurately depict the people's own idea of their wellbeing.

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