GDP

#geography/y10/human-wellbeing

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Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period.

GDP is usually calculated on an annual basis. Put simply, GDP is a broad measurement of a nation’s overall economic activity.

GDP calculations §

• An approximation of the value of goods produced per person in the country, equal to the country’s GDP divided by the total number of people in the country.

$\text{GDP per capita }=\frac{\text{GDP}}{\text{Total Population}}$

Criticisms: §

1. The statistic does not take into account the underground or unofficial economy: everything from black market activity to under-the-table Employment, as well as other transactions that, for various reasons, are not reported to the government.

2. The tendency of GDP to be interpreted as a gauged of material wellbeing, when in reality it serves as a measure of a nation’s productivity, which are not necessarily related.