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Discussion 2.2

Discussion 2.2

Q As a project manager, your task is to convince legislators that the benefits of iPad distribution measured by the value of devices distributed (consistent with an Income or Expenditure Approach to measuring GDP) understates actual benefits measured by an alternative measure more suited to describing unpriced gains in utility (for example, average senior cognitive gain, or average senior personal independence gain). Include the following considerations: • Why standard approaches to GDP measurement may not accurately reflect utility or benefits of many activities to individuals. • Additional limitations of using GDP as a measure of economic welfare. • One example of a good you use today that could be undervalued in GDP estimates, given significant increases in quality. (Example: A telephone allows an individual to access emergency help. Telephones used to be physically attached to physical structures; currently, satellite phones allow soldiers to direct aid to remote areas, motorists to access roadside assistance, and elderly individuals to travel with what might be a life-saving device.)

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The income approach to measure GDP is based on the accounting information presented by the company which states that all the expenditure of the economy is