GDP - a good measure of social Well-being
Secondly, GDP is calculated using the values of the final goods and services and therefore does not take intermediate goods into account. A final good or service is the product brought by the user at its end stage whereas an intermediate good could have gone into the production of a final good. For instance, bread is a final product that it brought by the consumer but flour could have been brought by the producers of the bread in order to make the bread.
Another factors that makes up GDP is that the product has to be made within the confidences of country which is basically summed up by the ‘D’ in GDP. For example, if a Viet Nam retailer manufacturers his products in Viet Nam then it becomes part of VN GDP but if it is produced and sourced from China then it does not.
Finally, GDP as measured in a given time period as mentioned earlier which is usually annually or quarterly. GDP can be measured in two ways the