...Name Course Professor Date The 22 members of the Arab League consummate a GDP of $ 2.599 trillion. On the other hand France recorded a GDP of $2.579 trillion, United Kingdom $2.443 trillion, Germany $3.383 trillion, US $16.02 trillion and Japan $5.88 trillion. The above data describes the interrelation that exists between the regions. A single economy for example US is able to uphold the entire region in the Middle East (www.cia.gov). The Middle East is the biggest exporter of petroleum products, despite its capacity to produce these expensive commodities it imports 90% of its food products for consumption. Among the European Union the United States is the biggest producer and exporter of oil, this leaves the other economies; France, Germany, Japan and the UK to seek for alternatives to use mainly in the Middle East (www.cia.gov). The Arab world is believed to be wealthy because of abundant oil in the region. Each country in the region ranks top 50 among the oil producing countries in the world. This makes the whole region together to embrace all the richness. However, the fact that it possess all that wealth the region has often been linked to terrorism (www.cia.gov). In conclusion, from the figures formulated from these data shows that the GDP in the European Union is very high as compared to the GDP in the Middle East. It is thus stereotypic to depict that the Middle East possess massive wealth which is not the case (www.cia.gov). Works cited CIA. Factbook...
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...Less exercise because of activities participating and worse time management (topic 3) Nowadays, many teenagers do not know how to manage their time effectively so they may waste their time on playing or just studying and do not other meaningful things, such as, having a volunteer work. Because of this situation, the Student Development and Guidance Center has done a survey about how TownU College students spend their time. According to the survey, I find that students spend most of their time for academic use and socializing which use 23.3 hours (involve studying and attending class) and 12 hours per week respectively. However, their only use one hour to having sports and fitness. Undoubtedly, spending time on studying and socializing is essential for future and sociable development. Physical development is an indispensable element of yours. A balance development is better than too emphasizing on one or two parts. Based on the result of survey, I would like to give some solution to students. First, I think college should provide physical education lesson. Although you may think that should university students have discipline to do it themselves and college have provided enough facilitates to them, some of students may still not to do. Some students may not love doing sports, so they do not have any incentive to have exercises. A PE lesson is a good way to coerce doing sports. Second, I think student union can hold a sport fun fair. The fun fair can involve games...
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...national income statistics (GDP) provide a good basis for comparison between countries? In the world of Economics, GDP per capita is used to compare the way that countries are coping with different economic climates; such as recession, boom etc. This essay will be assessing whether GDP is the best statistic to use for comparing different countries’ economies. GDP is the most commonly used method by world famous economists to assess how successful an economy is. GDP stands for Gross Domestic Product and is the market value of the official goods that have been transferred in and out in a country over a certain period of time. GDP is a good method for comparing the national incomes of countries because it can be very accurate. This is especially the case when the GDP for a division is divided between the population of a country. This is a statistic called GDP per capita and is a lot more accurate at showing how wealthy a country is because it divides the value of the goods transferred in a country between the whole population. This is clearly a better way of measuring how wealthy a country is because it explains how rich each person is in a country. This is a better way of comparison between countries because it shows how rich the country is in terms of value per person instead of making assumptions. This makes a huge difference because in normal GDP, China is the richest country in the world because it is worth the most as a country; however when GDP per capita comes into play...
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...COURSE TITLE : PRINCIPLES OF MACRO-ECONOMICS COURSE CODE : ECON1020 INSTRUCTOR : DAVID W. NERUBUCHA TASK: Analysis of the effects of monetary policy on Macroeconomics, GDP, Unemployment Inflation and Interest Rates. SUBMITTED BY: EMILY MOKEIRA ID. 641076 Introduction The root word of economics is economy. Economy comes from the Greek oikos - home and nomos - managing. (Dkosopedia, 2006) Economy can be described as the current soundness of financial indicators such as jobs and job growth, economic productivity and output, and can also be measured by a vast range of other factors such as the trade deficit, national debt, GDP, and unemployment rates. Economics primarily focuses on how laws and government policies impact the economy. Much of this looks at taxes specifically and more generally the public finance, which includes the spending and borrowing the government does. In this paper, the effects of the monetary policy on macroeconomics, GDP, unemployment, inflation and interest rates will be discussed. Throughout the paper explanations of how money is created will be given along with discussing what monetary policies combination will achieve the goal of economic growth, low inflation, and a reasonable rate of unemployment, what combination of monetary policies will better accomplish this goal. Monetary policy goals One goal of the Federal Reserve, commonly known as the Fed, is to affect the economic production and employment, both of...
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...between GDP and Quality of life Subject name: Macroeconomics Teacher’s name: Dr. Nguyen Trong Hoai Student’s names: 1) Ho Tran Thuy Nguyen 2) Nguyen Le Hoang Phuong 3) Phan Hoang Anh Thu 4) Huynh Thi Thu Ha 5) Le Phuoc Thanh Tin 6) Loi Kim Chau 7) Han Khanh Phương 8) Le Hoang Vu 9) Vu Quang Huy Date due: 15/05/2011 Table of Contents I/ Introduction: 3 II/ GDP- a powerful tool for economics measurement: 4 III/ Why is GDP not a perfect measure of well-being? 7 1. Leisure time: 7 2. The environment: 8 3. Non-market activity: 10 IV/ Conclusion: 11 I/ Introduction: It is no doubt that if people want to judge a person is doing economically, they usually first look at his or her income. Similarly, when talking about an economic condition of a country, it is not surprise that people most frequently look at the average income of that nation or in other word, Gross Domestic Product (GDP) per capita. To be more specific, the most commonly accepted method of comparing generalized differences in quality of life on a whole between nations is to use GDP per capita on purchasing power parity (PPP) basis in current international dollars. In our report, we propose to clarify the usefulness (the reason why economists use GDP per capita as a major measurement) as well as the limitation when using GDP to measure the economic well-beings of a nation. Before looking at pros and cons of GDP, it is necessary to know how GDP and...
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...the Gross Domestic Product (abbreviated GDP). GDP generally is defined as the market value of the goods and services produced by a country. One way to calculate a nation's GDP is to sum all expenditures in the country. This method is known as the expenditure approach and is described below. Alternative Approaches to Calculating GDP There are three approaches to calculating GDP: * Expenditure approach - described above; calculates the final spending on goods and services. * Product approach - calculates the market value of goods and services produced. * Income approach - sums the income received by all producers in the country. Expenditure Approach to Calculating GDP The expenditure approach calculates GDP by summing the four possible types of expenditures as follows: GDP | = | Consumption | | + | Investment | | + | Government Purchases | | + | Net Exports | Consumption is the largest component of the GDP. In the U.S., the largest and most stable component of consumption is services. Consumption is calculated by adding durable and non-durable goods and services expenditures. It is unaffected by the estimated value of imported goods. Investment includes investment in fixed assets and increases in inventory. Government purchases are equal to the government expenditures less government transfer payments (welfare, unemployment payouts, etc.) Net exports are exports minus imports. Imports are subtracted since GDP is defined as the output of the domestic...
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...Assignment On Relationship between GDP & HDI Submitted ToCourse Instructor Of B-University of DhakaDepartment of Banking | Submitted ByMd. Yasir ArafatId No. 62B.B.A 13th BatchDepartment of BankingUniversity of Dhaka | Date of Submission08.o7.09 | Introduction to GDP A region's gross domestic product, or GDP, is one of the ways of measuring the size of its economy. The GDP of a country is defined as the total market value of all final goods and services produced within a country in a given period of time (usually a calendar year). It is also considered the sum of value added at every stage of production (the intermediate stages) of all final goods and services produced within a country in a given period of time. Components of GDP Each of the variables C (Consumption), I (Investment), G (Government spending) and X − M (Net Exports) (where GDP = C + I + G + (X − M) as above) C (Consumption) is private consumption in the economy. This includes most personal expenditures of households such as food, rent, medical expenses and so on but does not include new housing. I (Investment) is defined as investments by business or households in capital. Examples of investment by a business include construction of a new mine, purchase of software, or purchase of machinery and equipment for a factory. Spending by households (not government) on new houses is also included in Investment. In contrast to its colloquial meaning, 'Investment' in GDP does not mean purchases of financial...
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...forecasts of GDP. What exactly is GDP? How do we use GDP to tell us whether our economy is in a recession or how rapidly our economy is expanding? How do we take the effects of inflation out of GDP to reveal the growth rate of our economic well-being? And how to we compare economic well-being across countries? © 2010 Pearson Education Canada Gross Domestic Product GDP Defined GDP or gross domestic product is the market value of all final goods and services produced in a country in a given time period. This definition has four parts: Market value Final goods and services Produced within a country In a given time period © 2010 Pearson Education Canada Gross Domestic Product Market Value GDP is a market value—goods and services are valued at their market prices. To add apples and oranges, computers and popcorn, we add the market values so we have a total value of output in dollars. © 2010 Pearson Education Canada Gross Domestic Product Final Goods and Services GDP is the value of the final goods and services produced. A final good (or service) is an item bought by its final user during a specified time period. A final good contrasts with an intermediate good, which is an item that is produced by one firm, bought by another firm, and used as a component of a final good or service. Excluding intermediate goods and services avoids double counting. © 2010 Pearson Education Canada Gross Domestic Product Produced Within a Country GDP measures...
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...paper discusses Gross Domestic Product and related concepts as a measure of social progress and welfare. Although GDP remains the most widely used measure of social progress, the recent global financial crisis and continued depletion of natural resources and environmental adverse impact has brought into question the use of GDP as the main indicator of social welfare. Four alternatives to GDP are assessed and evaluated as the standard for national accounts for Botswana and China. Alternatives fall into the following broad categories, corrected GDP and extended national accounts,composite indexes and subjective approaches. Key Words: composite indicators; economic growth; GDP, sustainable indixes. Botswana, China Table of Contents Introduction A region's gross domestic product, or GDP, is one of the ways for measuring the size of its economy. The GDP of a country is defined as the total market value of all final goods and services produced within a country in a given period of time (usually a calendar year). It is also considered the sum of value added at every stage of production (the intermediate stages) of all final goods and services produced within a country in a given period of time. Until the 1992 the term GNP or gross national product was used in the United States. The two terms GDP and GNP are almost identical - and yet entirely different; GDP (or GDI - Gross Domestic Income) being concerned with the region in which income is generated. That is, what is...
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...analysis of the data - GDP growth: recessions and cycles. GDP Growth: Recessions and Cycles Figure 1 - US Real GDP 1930 – 2014 with 2009 as the Base Year Source: (Shiller, 2015); (Federal Reserve Bank of St. Louis, 2015) Figure 1 above shows the real Gross Domestic product (GDP) of the United States for the years 1930 to 2014. Real GDP is essential and important as it shows the general soundness of the economy. Thus, when real GDP is high it means other macroeconomic factors such as employment and economic growth are positive and vice versa. This is because real GDP is substantially correlated to these macroeconomic factors. Therefore, the chart above shows that America’s GDP has been growing steadily over the years. This consistent growth has seen to it that America’s real GDP hit a high of 16.16 trillion U.S. dollars up from a low of around 1.06 trillion U.S. dollars in 1930. It is also apparent that the steady growth in the real GDP has led to many significant improvements in the economy and standards of living. Thus, it is evident that the standards of living and other macroeconomic factors are better now than in the mid nineteen hundreds (OpenStax College, 2014). Further, statistical and economic analysis shows that the real GDP of America has an average median and mean of approximately 6.34 and 7.20 trillion dollars respectively (Shiller, 2015). This is caused by the various cyclical changes in the economy. Despite the steady growth in real GDP the U.S. economy has...
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...AND CONTRAST THE MEASURES OF DEVELOPMENT WHICH ARE GDP, GNP, AND HDI? Firstly define the three key measures of development which are GDP, GNP, and HDI? Then I will compare and contrast the two economic approaches (GDP/GNP) and then compare and contrast these two to the human development approach (HDI) DEFINATIONS: GDP- The monitory value of goods and services produced by residents of a country (both citizens & non-citizens) in a given period of time usually a year. GDP can either be Real or Nominal GDP. GNP- This is the monitory value of goods and services produced by citizens of a country in a given period of time usually a year. GNP can either be Real or nominal. HDI-Since 1990 the UNDP has been publishing an annual report called the Human development report & the centre core of this report is the human development report (HDI). The HDI ranks countries according to their level of human development. It is for this reason therefore that the HDI focuses on three main variables & these include. Per capital income, life expectancy & educational attainment. SIMILARITIES 1. Both represent an attempt to measure the total economic output of a nation during a given period (usually one year) in sense they both measure development from an economic perspective 2. It measures both the size and direction of economic activity (growth, stagnation or contraction) – expansions and recessions are based on changes in GDP 3. Shows the relative strength of the nation’s...
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...this report are GDP growth, Government Debt and Budget surplus/deficit. In the data provided there is a very large standard deviation for GDP (see appendix). In both 2009 and 2010 the standard deviation was over four and a half times larger than the average of GDP itself. This will make it hard to create general assumptions for all countries to assess whether different factors correlate with each other. Even other factors such as GDP growth have relatively large standard deviations. This may cause difficulties in examining factors. An example of ambiguous data can be seen when comparing Canada and India. They both had fairly similar GDP and debt figures in 2010 but India’s GDP growth was around three times that of Canada’s. This shows that we cannot make hard-and-fast rules on links between different factors but we may be able to make general connections and assumptions. Distribution of GDP Growth and Government Debt within countries Figure 1: GDP Growth (2009-2010) 60 50 Number of Countries 40 30 20 10 0 Frequency GDP Growth 2009-2010 (% change) As we can see from Figure 1 distribution of GDP growth is relatively small, with 93.4% (171/183) countries having a growth between 0% and 10%. If we then look at Figure 2 we see that Government Debt is much more spread out compared to GDP growth. This shows that very few countries are able to achieve very high economic growth and few produce negative growth, but the majority of countries have a steady rate of GDP increase. 8421786 ...
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...Product (GDP for short) has been used as a method of evaluating the human well-being for a long time all over the world. But with the introduction of Human Development Report in 1990, the Human Development Index (HDI) has attracted great attention of policy and academic circles, as well as broader community around the world. This appearance also helps raising the question: Is GDP still an adequate measure of societal well-being and should it be replaced by HDI? This question has attracted a lot of people and cause a controversy among them. So let’s have a look at that matter of argument. As you know the standard well-being varies from time to time, from place to place so we should at first understand: What is well-being? In general, well-being is the pursuit and fulfillment of personal aspirations and the development and exercise of human capabilities, within a context of mutual recognition, equality and interdependence. To make it more detailed here are some key criteria that we should include to valuate well-being: Material living standards (income, consumption and wealth); Health; Education; Personal activities including work; Political voice and governance; Social connections and relationships; Environment (present and future conditions); and Insecurity, of an economic as well as a physical nature. That is the overview of well-being. What about the effectiveness of GDP in measuring societal well-being? To answer this question we should have a quick look at: How GDP covers...
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...Project—— The real meaning of GDP I. Background Since 1985, when the State Council of China approved to establish a System of National Accounting (SNA), using the gross domestic product (GDP) to measure the national economy, more and more people are getting familiar to this word. We must have heard about it for countless times. At the end of 2010, China has overtaken Japan as the world's second biggest economy in terms of GDP, which has drawn attention all around the world and has made Chinese people proud of the rapid development over the past decade. However, there are still a large quantity of people in China or even in the world that know nothing about GDP. Moreover, still many people do not fully understand the real meaning of GDP even they have heard about this economic term before. GDP per capita is often considered an indicator of a country's standard of living whereas there are limitations and criticisms against the belief that GDP measures a country’s living standard. Many economists (for example, who? Add sources) argue that GDP is an empty abstraction devoid of any link to the real world, and, therefore, has little or no value in economic analysis. Many environmentalists (for example, who? Add sources) argue that GDP is a poor measure of social progress because it does not take harm to the environment into account. Thus, it is important to find out the real meaning of GDP and its value to economic analysis. II. Statement of the problem First , this report intends...
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...GDP and its Flaws The Gross domestic product of a country primarily indicates the state that the country’s economy is in. Gross domestic product (GDP) is a measure of all market activity, as well as all the money that changes hands in a country during a fiscal period. GDP is usually calculated on an annual basis and it measures the total output of all goods and services produced in a country. It is a standard measure of the country’s total economic activity. As a country’s GDP rises, it is an indication that the economy is doing well, but as the GDP decreases, this is a clear sign that the country is experiencing economic downfall. However is the GDP an adequate measure of the countries well being? There are many flaws when considering the GDP, therefore it isn’t s good economic indicator. In today’s society, unemployment rates are increasingly high. There are many people whose income relies on jobs in which they do not receive a direct pay cheque. Individuals who are unemployed often volunteer in their communities, or find other ways to occupy their time. GDP only counts money transactions, so it leaves out many favours that people provide for each other at no cost. Moreover major parts of the household economy are ignored such as care for the elderly and for children, home maintenance and cleaning, food preparation. To add on voluntary service for the environment such as church and civic groups are also uncared for when considering the GDP. However GDP assigns...
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