Essay from the year 2012 in the subject Economics - Micro-economics, grade: A - 70, Heriot-Watt University Edinburgh (School of Management and Languages), language: English, abstract: It is generally agreed today that a well-known indicator to measure economic activities is the gross domestic product (GDP). Although the GDP is heavily discussed in science, economics and politics it has emerged as particularly important for both economic assessment of countries and even for well-being (van den Bergh, 2009). The main question which arises is: Does the GDP illustrate a possibility to quantify economic activity and well-being and thus, can GDP compare countries with each other adequately? This essay examines the topic: 'Is GDP a good measure of economic activity and well being? Give reasons for your answer. What particular problems arise when comparing GDP across countries?' The structure of this paper refers to the key figure GDP. The main body is separated into two parts. Firstly, chapter 2.1 will consider GDP as a measurement of economic activity and well-being. Secondly, section 2.2 will examine potential limitations to compare GDP across countries by stating arguments. Finally, the conclusion will abstract the main arguments and will give a firm stand.