The Value Of A Nation s Output Essay - 1835 Words

The idea of â€Å"not having enough† daunts us humans – in fact, we came up with economics, the study of scarcity. Beyond studying the allocation of resources, economists also aim to measure output and productivity. The measure of output has become highly relevant today and it is treated as a ‘score’ between economies. Intuitively, the higher the output, the better. A nation’s output is measured as their gross domestic product, which takes into the account the spending of households, firms, governments, and net exports. The gross domestic product (GDP) is believed to be the best measure to reflect the standard of living. However, it lacks accuracy in the sense that non-monetary elements are not taken into account, which means that countries with high GDP may have a poor natural ecosystem or work ethic. For this reason, economic growth should not be pursued continuously at the expense of real quality of life, especially in developed nations. Economist E.J. Mishan, well known for his skepticism towards economic growth, strongly believes that we are at the brink and the end of economic growth is near. In his book â€Å"The Economic Growth Debate,† he stated: â€Å"anyone having the slightest familiarity with the physics of heat, energy and matter will realize that, in terms of historical time, the end of economic growth, as we currently experience it, cannot be that far off† (Mishan, 1977). Mishan also noticed that pursuing economic growth in developed nations does more harm than good to theShow MoreRelatedThe Gross Domestic Product ( Gdp )974 Words   |  4 Pagesmonetary value of all the finished goods and services produced within a country s geographic borders in a determined period of time. It is used as a quantitative measure of the total economic activity of a nation, and it is usually calculated on an annual basis. The GDP can be determined in three different ways: output or production measure, income measure, and expenditure measure. In theory, it should all give the same number. The output or production approach defines the GDP as the value of theRead MoreGlobalization Is An Ongoing Process, And The Process Of Globalization1666 Words   |  7 PagesIntroduction: Indian Government announced the Globalisation policy in July, 1991 with the main aim of increasing the standard of living of the country people and putting the country s economy in the right direction. As a part of the structural adjustment of the policy, opening the gateways of Indian economy, one of the largest economies in the world, to the world in every sphere, be it trade, investment and allowing the multinational companies to make profit in the country, was essential. Now theRead MoreThe Study of Macroeconomics1507 Words   |  7 Pagesdo output and employment sometimes fall and how can unemployment be reduced? †¢ What are the sources of price inflation and how can it be kept under control? †¢ How can a nation increase its rate of economic growth? †¢ Objectives of Macroeconomics OUTPUT †¢ high level and rapid growth of output †¢ to provide goods and services that the population desires †¢ most comprehensive measure of total output in an economy is the gross domestic product / gross national product †¢ potential output is determinedRead MoreA Systematic Theory Of Population Theory1611 Words   |  7 PagesAccording to the Economic Thought textbook the summary of Malthus Population Theory deals with the misery and poverty among the lower classes of every nations. Thomas Robert Malthus was the first economist to propose a systematic theory of population. 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In principle, an economy is in equilibrium when the main macroeconomic variables tend to remain stable over time without external shocks. However, the conditions that this balance must fulfill differ according to the period in which we are analyzing the economy. In any economy, output, income, and aggregate expenditure coincide. However, this cannot be the equilibrium condition, since it is an identity. In order to be able to say that the economyRead MoreHistory Of Japan And West Germany1076 Words   |  5 Pagescountries’ different growth rates, accepting the notion that capital accumulation is the main cause, but refuting the idea that it is the only cause. Economic growth is an increase in the value of good and services- GDP- produced by a country, per member of its population, over time. GDP is measured through national output, income or spending. 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Europe and USA should work together for dealing with China s growing economy. Since the USA and the European Union was a big trading partner, they will remove tariff barriers and regulatory detention. The deal that balanced regulations on food, cars, toys, and pharmaceuticals is more necessary to save severalRead MoreTest Bank: International Economic1116 Words   |  5 PagesSovereignity- supreme amp; independent power or authority in government as possessed or claimed by a state or community. Being sovereign nations can be more indifferent to the interests of others. As long as nations exist, international economics will always need a separate body of analysis distinct from the rest of economies. Globalization- worldwide integration amp; development; extending to other or all parts of the world Euro Benefits * Low interest rates due to a high degree of