StudentShare solutions
Triangle menu

Principles of Economics Gross Domestic Product - Essay Example

Nobody downloaded yet

Extract of sample
Principles of Economics Gross Domestic Product

During the base year nominal and real GDP are equal. Therefore real GDP reflects both prices and quantities of goods and services produced by an economy, whereas nominal GDP reflects the produced quantities only.
GDP does not reflect accurately the nation's productivity. There are products that GDP excludes, because it is difficult to measure them. For one thing, GDP includes all items produced and sold legally in the market. This means that products that are produced and sold illegally cannot be traced and measured by the GDP. Additionally, GDP does not include products and services that are actually produced by households but never enter the market. These are, for example, home grown fruit or vegetables that are used within the households that cultivate them. Also, GDP excludes other immeasurable variables like the quality of the environment or leisure time and does not reflect the distribution of income within an economy. ...Show more


Because GDP measures the total spending on goods and services in terms of money over a particular period, it is important to note that prices are not constant over time. To reflect this dynamics and in order to make realistic comparisons between GDP figures over the years, economists have introduced two measures for GDP…
Author : kovaceknorris
Principles of Economics Gross Domestic Product essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Principles of Economics Gross Domestic Product"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Gross Domestic Product Essay
The methodologies include Production Approach, Income Approach as well as expenditure approach however what is most important is the fact that all three commonly used methodologies present the GDP at price levels i.e. at current market price and at constant market prices.
11 pages (2750 words) Essay
Gross Domestic Product and Welfare
It should be noted that the three countries under consideration represents the largest countries in the world in terms of land area. Canada leads with a total area of 9.984 million square meters while United States and China have 9.826 million square meters and 9.596 square meters respectively (CIA World Factbook 2007).
4 pages (1000 words) Essay
Gross Domestic Production
There are three approaches that are used in the calculation of GDP and this include the expenditure method, the income method and the value added or product method. This method involves the calculation of GDP by adding up all the factor income plus taxes minus subsidies on locally produced and imported goods, the following equation summarizes calculation of GDP using the income method:
6 pages (1500 words) Essay
The relation of the Gross Domestic Product to economic welfare
The Gross Domestic Product seeks to measure the sum of incomes received by the different types of sectors of the economy, from manufacturing and wholesale to agriculture and service industries. In most developed countries, this national data is published and revised every three months by the National Statistics Office.
4 pages (1000 words) Essay
Economics: Principles, Problems, and Policies
As individuals are diverse with different ideas, perception, and values, they also make different choices. Economics deal with the allocation of resources which aims to maximize the utility of all individuals. Though economics is considered as a social science, it is also recognized as the hardest among them as it heavily utilizes quantitative method in explaining different economic situations.
5 pages (1250 words) Essay
Gross Domestic Product College Essay
There are several methods of GDP calculation, but since all of them are correct it is sufficient to state the most popular one: GDP = consumption + investment + government spending + (exports - imports); where 'consumption' shows personal expenditures of households, 'investment' is a non-financial purchases made for capital accumulation, 'exports' indicates products and services produced domestically but sold overseas, and 'imports' reflects goods from abroad sold within the country.
6 pages (1500 words) Essay
Gross Domestic Product Master Essay
GDP is often expressed as either nominal or real GDP. When UK GDP trend from 1948 to 2005 is expressed in these measures and are graphed together, it should be noted that this will result into two different lines indicating the disparity between their values.
6 pages (1500 words) Essay
Gross Domestic Product
The data used to build and refine the econometric model was extracted from the Economic Trend Annual Supplement (ETAS) presented by the British Office for National Statistics (ONS). This was accomplished by applying fundamental econometric methods such as linear regression, misspecification testing, and hypothesis testing using the computer package E-Views.
8 pages (2000 words) Essay
Gross Domestic Product Bachelor Essay
As such it is an indicator of a country's standard of living. Gross Domestic Product (GDP) is defined as "the total value of final goods and services produced within a country's borders in year, regardless of ownership (Gross Domestic Product 1)." In national income accounting, GDP differs with Gross National Product (GNP) as the latter includes inter-country income transfers.
3 pages (750 words) Essay
Gross Domestic Product (GDP)
teresting to compare healthcare indicators for the US as a developed country and the one who spends large amount on healthcare with Bangladesh as a developing country and the one who spends small amount on healthcare. World Health Organization (2013) reports that Bangladeshs
1 pages (250 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us