Hello:
This week, I have been into GDP. GDP is defined as the market value of all final goods and services produced with in a country in a given period of time.
This is a complex definition, but I have been able to keep it up so far. Market value is like the price of goods right now at your the nearest store. Final goods and services means that the goods need to be in its final stage, for example a leather bag costs $250 and the leather only costs $150, we are not counting the cost of leather in the GDP as it will be counted in the cost of leather bag. Thus, intermediate products are not counted. Produced with in a country means, that the product needs to be produced within boundary of a country. Goods produced outside the country by the country's citizen cannot be counted in the GDP. And for the given period of time is simple, at a specific time.
The components of GDP are consumption, investment, government purchases and net exports. Net exports is the amount of exports minus the imports.
FUN FACT: According to google, the earth's GDP was 71.67 Trillion USD in the year 2012.
If you want to look at different country's GDP click this Link I recommend you to visit it once, it has lots of interesting data and blogs.
This week, I have been into GDP. GDP is defined as the market value of all final goods and services produced with in a country in a given period of time.
This is a complex definition, but I have been able to keep it up so far. Market value is like the price of goods right now at your the nearest store. Final goods and services means that the goods need to be in its final stage, for example a leather bag costs $250 and the leather only costs $150, we are not counting the cost of leather in the GDP as it will be counted in the cost of leather bag. Thus, intermediate products are not counted. Produced with in a country means, that the product needs to be produced within boundary of a country. Goods produced outside the country by the country's citizen cannot be counted in the GDP. And for the given period of time is simple, at a specific time.
The components of GDP are consumption, investment, government purchases and net exports. Net exports is the amount of exports minus the imports.
FUN FACT: According to google, the earth's GDP was 71.67 Trillion USD in the year 2012.
If you want to look at different country's GDP click this Link I recommend you to visit it once, it has lots of interesting data and blogs.
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