The four components of gross domestic product are personal consumption, business investment, government spending, and net exports. 1 That tells you what a country is good at producing. GDP is the country's total economic output for each year.... read more ›
GDP can be measured using 1) the expenditures approach, 2) the income approach, or 3) the value added approach. The three approaches are equivalent—regardless of which approach you use you should end up with the same value.... continue reading ›
Gross domestic product (GDP) measures total domestic economic activity. GDP estimates use three approaches: output, expenditure and income. Data for GDP estimates are sourced from survey and administrative sources, which are used in the compilation of individual components of GDP.... see more ›
The three most common ways to measure real GDP are: Quarterly growth at an annual rate. The four-quarter or "year-over-year" growth rate. The annual average growth rate.... view details ›
An entrepreneur is a person who combines the other factors of production - land, labor, and capital - to earn a profit.... read more ›
All three methods for measuring GDP give equal results because the aggregate spending on goods and services is the income to the firms. And every final good or service produced is a part of aggregate spending either through consumption or investment by firms.... see more ›
- Real GDP. Real GDP is a calculation of GDP that is adjusted for inflation. ...
- Nominal GDP. Nominal GDP is calculated with inflation. ...
- Actual GDP. ...
- Potential GDP.
- What to produce? ➢ What should be produced in a world with limited resources? ...
- How to produce? ➢ What resources should be used? ...
- Who consumes what is produced? ➢ Who acquires the product?
Land, labor, and capital as factors of production were originally identified by early political economists such as Adam Smith, David Ricardo, and Karl Marx. Today, capital and labor remain the two primary inputs for processes and profits.... view details ›
In the production process, the output or product may be described in three (3) ways in economics: Total Product (TP), Average Product (AP), and Marginal Product (MP).... see details ›
The main factors of production are land, labor, and capital. Land refers to natural resources used to make goods and services. Labor describes the effort a person puts into tasks that result in payment. Capital is any human-made resource used to make goods and services.... continue reading ›
Limitations:i It does not reflect distribution of income among people. ii It does not take into account non-monetary exchanges. iii It does not take into account externalities.... see details ›
GDP is the gross domestic product of a country. It measures the total final market value of all goods and services produced within a country during a given period.... read more ›
GDP can be expressed as an equation that sums up all of its components: a nation's level of consumption, investment, government spending on goods and services, and the difference in profit between exports and imports.... read more ›
The four components of GDP—investment spending, net exports, government spending, and consumption—don't move in lockstep with each other. In fact, their levels of volatility differ greatly.... see more ›
Command economy relies on government officials to answer the three basic economic questions. Officials called – central planners/ decide on what will be produced and made. Individuals have little or no say in economic choices. Command economies don't exist.... see more ›
What are the three economic questions every society must answer? What goods and services should be produced? How should they be made? Who consumes these goods and services?... continue reading ›
In a pure command economy, the basic economic questions are answered by the government, which owns the productive resources and handles distribution of goods and services. These two descriptions represent extreme ends of a spectrum.... view details ›
GDP is composed of goods and services produced for sale in the market and also includes some nonmarket production, such as defense or education services provided by the government. An alternative concept, gross national product, or GNP, counts all the output of the residents of a country.... continue reading ›
GDP growth is mainly influenced by labor productivity and total hours worked by the labor workforce of a country. (GDP can be thought of as multiplication of labor productivity times the size of labor workforce). Labor productivity can be understood as the revenue generated by one labor-hour of the country.... see more ›
literacy rate, natural resources, physical capital, and standard of living. explain how changes in a particular factor will influence the GDP of a country.... view details ›