The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country’s economy and has been used by all countries for many years. It represents the total dollar value of all goods and services produced over a specific time period and expressed comparatively to the previous quarter or year. From this we can usually gather that the GDP is very important, however, it is imperative for one to understand that being such an old indicator, it can often be described to be deficient nowadays because of a lack of variables used in its calculation.
In some respect, Kennedy’s approaches to the deficiencies of GDP are true. Some believe that, at best, it gives a simplified measurement of human well being, whilst actually it does not serve any purpose, as conditions generating human happiness are more complicated than mere economic activity. “GDP not only fails to measure key aspects of quality of life; in many ways, it encourages activities that are counter to long-term community well-being. Its measurement also encourages the depletion of natural resources faster than they can renew themselves” (Beyond GDP- Costanza). GDP encourages depletion because the value for lumber by deforestation is valued more in terms of GDP than if left uncut. These services including urbanisation, and reducing flooding from storms are not part of the market economy and, as a result, are not included in the calculation of the GDP yet still have a major socio-environmental impact.
GDP also measures the total production for a nation but we are never given the extent to which it is divided amongst its residents when analysing the GDP. For example, in a corrupt nation, well-being could be very low despite a high GDP; leaders may be ...
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http://www.huffingtonpost.com/2013/06/01/happiness-index-only-1-in_n_3354524.html
Case study on Brazil is used in this article to state that GDP does not give a true representation on the development status of a country.
Gross domestic product (GDP) is one of the best ways to measure how a country’s economy is doing. A main component in figuring the GDP is personal consumption expenditures. Personal consumption expenditures accounts for about two-thirds of domestic
During the course of this paper, we hope to give the reader a better understanding of the economic forces at play that influence this Nation's GDP, in therefore its economic health.
gross domestic product – the total value of services and goods that were produced within the nation’s borders by the people in a course of one year, which excludes the income earned from abroad
“GDP is the most important concept of national income is Gross Domestic Product. Gross domestic product is the money value of all final goods and services produced within the domestic territory of a country during a year.” (Thapa.R)
This paper will discuss the Gross Domestic Product (GDP), meaning the total market value of the country’s output (Case, 2017). I will explain the Expenditure approach and the four components used to calculate the GDP. I will also go over what is not included in the calculation and how inflation and unemployment relate to the growth of the GDP. In addition we will look at how the GDP reflects the economic welfare of our society and finally changes I would make and how they reflect a Christian world view.
When comparing GDP from different countries, the size of that country should be taken into consideration. There are countries with a huge population (ie. China), countries with medium population (ie. US), and countries with small population (ie. Singapore). Let hypothetically proposes that all 3 countries have the same GDP, then wouldn’t Singapore be the strongest economy since it produces the same amount of goods/services with less resources? Thus, just “tallying up gross domestic product [can]… yields a warped picture of China’s economic rises” (Levi). China population is more than four time the population of the US and technically, its GDP should be at least 3 time the US’s; yet it’s barely higher even after adjusting for P.P.P. By definition, China’s economy is still much weaker than the US’s economy. In addition, when dividing China’s GDP by its gigantic population size, the result is grim for a nation that boast of being the number one
Gross Domestic Product (GDP) is the final value of all goods and services produced domestically in a year, minus any trade deficit. It can also be interpreted as the sum of the total spending of its component parts. There are several components of GDP, and those include Consumer Spending (C), commercial and residential Investment Spending, Government Spending, and Net Exports (value of all exports minus the value of all imports). The largest component of GDP is Consumer Spending, totaling about 6.255 trillion dollars in 1999, or sixty seven percent (67%) of GDP. Like GDP, Consumer Spending (here after C) is also determined by several component parts. C is the sum of consumer spending on Durable Goods (DG: goods that can be stores and have an average service life of three years), Non-Durable Goods (NDG: storable goods with service life of less than three years.), and Services Spending (S: commodities that cannot be stored and must be consumed at the time of purchase). This paper will deal exclusively with the C component of GDP, and more specifically with the components of C and their changes from 1959 until 1999.
The economy concept or theory related to the article is the Gross Domestic Product. Gross Domestic Product (GDP) measures the commercial value of the final goods and services that are produced in a country within a given period of time. It calculates all of total of the output such as goods and services that are produced only inside the border of one country. GDP includes only goods and services that are produced for a purpose which is to be sold in the market. However, it does not include items that are produced at home and also is used or consumed at home and never enter any economy market. It also does not included illicit and illegal goods and services such as illegal drugs and items in the market. For example, work
In terms of economy, the two values GDP and PPP are very significant to understand, analyze and evaluate a country’s overall economic activity. GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period .PPP, on the other hand is used worldwide to compare the income levels in different countries. PPP thus makes it easy to understand and interpret the data of each country.
Whether total or per capita, GDP figures are a very useful indicator of a countries SoL but only look at a single material dimension, that of income, output, or expenditure. They are not an explicit or accurate measure and do not incorporate the non-material and non-quantifiable dimension to SoL.
- GDP: Dollar value of all final goods and services produced within a country in a given year; output
In order to assess the current state of the economy, the examination of important economic indicators or variables has always played a vital role in the understanding of the complex economic systems we live in. The analysis of these economic variables studied by many, not only has served as a tool to evaluate the current economic performance of a country, but also has allowed experts to envisage and continue the pavement of an economy's road. Currently, some economic variables have had favorable improvements indicating a general good outlook for the economy for the following months, requiring a further individual analysis and comparisons in order to foresee crisis or successes.
I will advance the thesis that the Human Development Index (HDI) is a better measure of economic performance than the Gross Domestic Product (GDP) per capita. By saying that the HDI is a better system to measure economic performance, I mean that because the HDI highlights the trend between longevity, education and economic growth, it calculates a better analysis of an economy (Costa, Steckel 1997, p. 71). In contrast, the GDP per capita only accounts for the gross domestic product without paying any attention to other factors of an economy (Hawthorn, Sen 1997, p. 60). With this being said, my thesis asserts that the HDI is a better measure for economic performance because it considers significant factors that play large roles in an economy, namely longevity and education; whereas the GDP per capita solely consider the gross domestic product, which is a calculation that is much too narrow to gather an appropriate analysis.
The Gross Domestic Product (GDP) is the total market value of in a country’s output. The GDP is the total market value of all final goods and services produced by factors in within given period of time that located in the country doesn’t matter they are citizens or foreign-owned companies. Hence, the GDP is the best way to measure the country economy.