GDP

Question 1

Define is GDP

Answer 1

GDP is the market value of the output produced for market consumption in a certain economy over a given period.

Question 2

What is Market Value

Answer 2

• The market value of something is how much you have produced for final consumption multiplied by how much these goods or services are priced at

Question 3

What is Final Consumption

Answer 3

• Final consumption means that a certain good or service is being sold to its final consumer. Until the value of a goods or service has been used by the final consumer it is not counted as being part of GDP.

Question 4

Define Recall GDP

Answer 4

The market value of output produced for final consumption at a given period in time in an economy.

Question 5

What does It mean by ‘ The Take Off’

Answer 5

Although most countries started growing from similar conditions, some countries began growing at a much earlier time. This then lead to the differences in living standards that we see between different countries.

Question 6

What cause the ‘The Take off’

Answer 6

The main reason for the sudden take off is technological advances and adoption.

Question 7

What is Technology ?

Answer 7

Technology is how one combines labor, capital and material and other inputs to create an output.

Question 8

What does it mean by Technological improvements

Answer 8

A change in technology that reduces the amount resources (labor, machines, land, energy) needed to produce a given amount of output.

Question 9

Define Capitalism