Production may be thought of as a process of transforming both tangible and intangible inputs into something that can be utilized by people, which are the goods and services (Wikipedia, 2015). On the other hand, distribution refers to the manner in which these goods and services are sent or conveyed to the consumers (Tutor2u.net, n.d.). Alternatively, the term consumption can be described in various ways. According to Hill (n.d.), it is generally defined as a process of purchasing or buying those previously produced and distributed goods and services. These three terms are related to the economic growth of a region or a country (Wikipedia, n.d.). In other words, they may act as indicators in determining the growth of the economy of a region or a nation, whether directly or indirectly. Therefore, the aim of this essay is to discuss whether is it sufficient or valid enough to only analyse the consumptions of goods and services and neglecting both the productions and the distributions of goods and services in order to measure the economy of a region or a country.
This paragraph will discuss about how analysing the consumption of goods and services is enough to evaluate the economic growth of a region or a country. According to Piana (2001), consumption may be classified in accordance with the durability of the items being purchased (in addition to the consumptions of services); non-durable items (food and drinks) and durable items (furniture and cars). There is a strong
5. How are the wealth and productivity of a nation usually measured, and what other factors must be considered when evaluating the well-being of a nation’s people?
For instance, economic growth is mainly constrained by the policy and political environment, which indicates that the economic growth momentum is not strongly autonomous. The current consumption growth will mainly depend on policy guidance and encouragement in the national income distribution system. If there is no fundamental change in circumstances, the steady growth in consumption of endogenous mechanisms is hard to form.
14. Explain why a nation’s GDP is both a good and poor measure of its economic well-being and progress?
Economic Development: Growth is associated with structural, social change and change in the important institutions of the economy.
Economic growth is a common term used by economists to describe in increase in production in the long run. According to Robinson (1972) economic growth is defined as increases in aggregate product, either total or per capita, without reference to changes in the structure of the economy or in the social and cultural value systems. The basic tool of measuring the economic growth includes the real GDP. It provides some quantitative measures in terms of the production volume.
Economic growth refers to the output of goods and services produced per capita in a nation over time. It is measured as the percent rate of increase in Real Gross Domestic Product(GDP) which is the value of total productions produced by an economy in
In this report I will be comparing methods used by two different retailers on how they distribute two chosen products, of my choice, in two different retailing sectors. Seeing as the food and clothing sector both have very different styles of how they meet their product requirements, I will compare Tesco and JD; The products from these two companies itself that I’m going to compare is ‘Tesco Value Bread’ and Nike hoodies.
First of all, economic growth is one of the macroeconomic objectives that the government wants to achieve as a primary goal and it happens when there is a rise in the enlarged product of population and per capita consumption. According to Hoover (2011), economic growth is the total material output of good values and service values in the market, measured by Gross Domestic Product (GDP) in a specific period of time. The growth of GDP is measured by excluding intermediate consumptions (production and resale), purely financial transactions and second-hand sales, which prevents double counting. To obtain an accurate value of economic growth, GDP needs to include the total output of expenditures and incomes.
Economics growth is, it the short run an increase in real GDP and in the long run an increase in the productive capacity of an economy (the maximum output that the economy can produce). GDP stands for Gross Domestic Product which is the country’s production of goods and services valued at market price in a given time period. Real GDP is when these figures are corrected for inflation using a base year (The UK uses 2003 as its base year). It can be measured in three different ways; the output measure is the value of the goods and services produced by all sectors of the economy; agriculture, manufacturing, energy, construction, the service sector and government. The
Measures of economic well-being such as GDP are subject to some limitations hence it is appropriate to use other alternative measures of economic growth. The limitations of GDP in measuring the economic well-being of a country include failure to capture the underground economy and failure to capture changes inequality. Others include the development of new products and failure to take in account human or leisure costs (Maddison 48).
Economic growth occurs when there is a sustained increase in a country’s productive capacity over a period of time. Economic growth is often measured by an increase in real Gross Domestic Product (GDP). Brazil in recent years entered an economic slowdown, after a decade of strong growth in the 2000’s (averaging 4.4% between 2006 -11) underpinned by the global resources boom. Strong global demand for its commodity exports, combined with high commodity prices, helped brazil achieve sustained economic growth. This in
Robert F Keneddy speech on GDP highlighted the unique aspects associated with the understanding of GDP. The speech talked about the meaning and importance of GDP and the misinterpretations that are often attached with the concept. He was of the view that accumulation of material things has remained a main focus of economic agents and doing so community values and community excellence are often compromised. In his speech he presented an important concept that GDP cannot be used as a measure of welfare of wellbeing of the economy because it does not take into account the health of individuals, their standard of living, quality of education provided to the individuals etc. In this way it is not a good option to rely on GDP while having an idea about the development of an economy.
the Design of Goods and Services is fairly much of the transformation process in a firm. The design of process is extremely influential in determining decisions relating to business elements such as Cost, quality, human resources. Additionally, to survive in the business arena, a firm must design goods and services to meet the needs and wants of their customers (Heizer & Render, 2011).
Economic growth refers to the rate of increase in the total production of goods and services within an economy. Economic growth increases the productivity capacity of an economy, thereby allowing more wants to be satisfied. A growing economy increases employment opportunities, stimulates business enterprise and innovation. A sustained economic growth is fundamental to any nation wishing to raise its standard of living and provide a greater well being for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced over a year. It is the total value of production within the economy. The total value of production is the total value of the final goods or services less the cost of
In earlier times Gross Domestic Product was one of the main indicators to measure a country’s wealth. Gross Domestic Product (GDP) is defined as the total value of all the goods and services produced by a nation in any given year ("Is the Gross Domestic Product (GDP) a Good Measure of Prosperity?"). There are two ways of calculating a country’s GDP. The first is the income approach which is calculated by adding the wages of workers, income from rent, interest and profits. The second, more common form of calculating GDP, is the expenditure approach. Here GDP totals consumption expenditure, investment, government spending and net exports. GDP statistics are considered to reflect a county’s economic output which could possibly lead to growth. However GDP is a measure of income and it should not be confused with wealth. Which is why most modern economists do not consider GDP to be a good measure of a