Business Economics

High school
Essay
Miscellaneous
Pages 16 (4016 words)
Download 0
Gross Domestic Product (GDP) refers to the market value of all final goods and services produced in a country within a specified period of time usually one year. GDP is used by economists to measure the performance of a country's economy. Final goods refer to the goods which are bought by a consumer for consumption and not for use in production of other goods…

Introduction

Wessels however points out that this does not necessarily mean that the citizens of the US have better living standard than their counterparts in the UK. (21). GDP therefore cannot be used as the sole factor in measuring the living standards of the citizens of a country. However chances are that a country with a high GDP has a better standard of living than that with a low GDP.
So what encompasses GDP' Well there are a number of components which when added together make up the GDP of a country. According to Sowell, they include Consumption which is denoted by letter C, Investment which is denoted by letter I, spending by government and finally exports and imports denoted by letter X and M respectively. Consumption refers to all the money spent by citizens of a country in buying goods and services which they expect will satisfy their needs. This includes money spent on food, purchase of new clothes as well as entertainment. (50-51)
Sowell further notes that spending by the government is another component of the GDP. For example the UK government spends money to buy new military equipment and also pay its workers. (70).This expenditure is also part of the country's GDP. Investments into an economy are also used in calculation of the Gross Domestic Product. ...
Download paper
Not exactly what you need?

Related papers

Business Economics 1
As third world countries are moving into the industrialized world, the demand is growing. As this evolution of the world is taking place, more oil is being drawn from the earth, which means one day the oil supply will dry up (Presswire). That does bring about the question of whether or not supply is an issue since we are told frequently that one day the earth will not yield anymore oil.…
Business Economics 2
70% of bank funds were diverted to real estate mortgage. The income of families and household was diverted from buying goods and services to buying properties- houses and buildings. A large chunk of money was used in payment of debt service to banks and financial companies. The payment of debt service by the economy's non-financial sectors interrupts the circular flow of income supposed to exist…
Business Economics
Wessels however points out that this does not necessarily mean that the citizens of the US have better living standard than their counterparts in the UK. (21). GDP therefore cannot be used as the sole factor in measuring the living standards of the citizens of a country. However chances are that a country with a high GDP has a better standard of living than that with a low GDP.…
Business Economics Paper
It was founded on July 1, 1981 by Sim Wong Hoo.…
International Business Economics
The figures show labour cost in hours for producing one unit of good…
Business Economics College Essay
As a top partner at an accounting firm, I would put in place a high powered internal team that would have sweeping powers and would be responsible to study past failures, recommend and implement changes and more importantly, conduct a random or systematic 2nd round of auditing on team/partners/clients. (The Demise of Arthur Andersen, 2002)…
Business Economics and Finance
Carbonated water was teamed with the new syrup to produce a drink that was at once "Delicious and refreshing," a theme that continues to echo today wherever Coca-Cola is enjoyed (The Coca-Cola COmpany).…