June 2012. Discuss how the 2012 GDP and its components were affected under the three different approaches of GDP accounting. A garage was operated by Peter. In March 2012‚ he spent $60‚000 buying a 5-years old second-hand car. Also‚ he paid his worker $5000 to repair and clean up the engine. In June 2012‚ he sold the car at $68‚000. In Q7.1‚ It requires us to find the changes of gross domestic product (GDP). First‚ I would state the definition of GDP. GDP refer to the market value of all
Free Gross domestic product Goods Value added
Explain why GDP is not a perfect measure of economic well being of a nation. By definition the GDP (Gross Domestic Product) is a measure of the income and expenditures of an economy. Also‚ it can be defined as the total market value of all final goods and services produced within a country in a given period of time. Base on GDP definition and base on many economist points of view regarding to the definition of well being. I understand that GDP is not a perfect measure of economic well being
Free Gross domestic product Economics
of time to another. It can be measured by gross domestic product (GDP) and this can give us a measure of economic performance. Actual economic growth is an increase in GDP. There are various distinctions used in the context of economic growth such as nominal GDP so the face value and real GDP which is when GDP is adjusted for inflation. It can be said that economic growth can be a useful measure of economic performance because GDP can be calculated per capita‚ or per head of population. Economic
Free Gross domestic product Economics Value added
The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country’s economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually‚ GDP is expressed as a comparison to the previous quarter or year. For example‚ if the year-to-year GDP is up 3%‚ this is thought to mean that the economy has grown by 3% over the last year. Measuring GDP is complicated (which is why
Free Gross domestic product Government spending Macroeconomics
Sample Real GDP Calculation Econ 102-1 Alley Nominal GDP is calculated by summing the value of goods and services produced in a given year using the prices of these outputs in that year. If the general price level increases or decreases from one year to the next‚ it is difficult to compare the amount of output that a country produces across different years. To correct for this‚ we want to value output in every year using the same prices. In other words‚ we calculate real GDP. Consider the
Premium Gross domestic product Economic growth
PAKISTAN CURRENT ACCOUNT TO GDP Pakistan recorded a Current Account deficit of 2 percent of the country’s Gross Domestic Product in the fiscal year 2011-12. Current Account to GDP in Pakistan is reported by the State Bank of Pakistan. Pakistan Current Account to GDP averaged -2.32 Percent from 1980 until 2012‚ reaching an all time high of 4.90 Percent in June of 2003 and a record low of -8.50 Percent in June of 2008. The Current account balance as a percent of GDP provides an indication on the level
Premium Balance of trade Balance of payments International economics
RELATIONSHIP BETWEEN EXPORT AND GDP OF TANZANIA SOPHIA IBRAHIM MSc.in Computer Science Abstract This paper analyses the relationship between export and Economic growth of Tanzania and evaluate the relationship of these variables for the period of 2000-2010.It is observed from the data obtained from National Bureau of Statistics website that export is increasing for the period of ten years from(2000 – 2010) likewise GDP is increasing. Therefore these two items relate to each other. It can be concludes
Premium Economics Economic growth Economic development
dollars worth of products per person in South Korea each year. South Korea has a Gross Domestic Product (GDP) of one trillion fourteen billion five hundred million US dollars. Compared to the BRIC countries South Korea is fairly close except for the case of China who has a GDP of almost six trillion US dollars. (Google.com‚ 2012) (See appendix A2) South Korea has a Purchasing Power Parity (PPP) GDP of one trillion five hundred forty nine billion US dollars. They are compared at thirteenth in the world
Premium Integers United States United States dollar
NIGERIAN ECONOMY/GDP AND PRODUCTION Nigeria recorded a Current Account surplus of 11.60 percent of the country’s Gross Domestic Product in 2011. Current Account to GDP in Nigeria is reported by the African Economic Outlook. Historically‚ from 1980 until 2011‚ Nigeria Current Account to GDP averaged 1.2 Percent reaching an all time high of 37.9 Percent in December of 2008 and a record low of -18.7 Percent in December of 1986. The Current account balance as a percent of GDP provides an indication
Premium Balance of trade Balance of payments Macroeconomics
GDP – Gross Domestic Product “GDP is the market value of all final goods and services produced within a country in a given period of time.” GDP‚ which measures the total income of a nation. GDP is the most closely watched economic statistic because it is thought to be the best single measure of a society’s economic well-being. Gross Domestic Product (GDP) Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country
Premium Gross domestic product Macroeconomics Economics