Introduction to Gross Domestic Product

Introduction to Gross Domestic Product In order to analyze the health of an economy or examine economic growth, its necessary to have a way to measure the size of an economy. Economists usually measure the size of an economy by the amount of stuff it produces. This makes sense in a lot of ways, mainly because an economys output in a given period of time is equal to the economys income, and the economys level of income is one of the main determinants of its standard of living and societal welfare. It may seem strange that output, income, and expenditure (on domestic goods) in an economy are all the same quantity, but this observation is simply the result of the fact that there is both a buying and a selling side to every economic transaction. For example, if an individual bakes a loaf of bread and sells it for $3, he has created $3 of output and made $3 in income. Similarly, the buyer of the loaf of bread spent $3, which counts in the expenditure column. The equivalence between overall output, income and expenditure is simply a result of this principle aggregated over all of the goods and services in an economy. Economists measure these quantities using the concept of Gross Domestic Product. Gross domestic product, commonly referred to as GDP, is the market value of all final goods and services produced within a country in a given period of time. Its important to understand precisely what this means, so its worth giving some thought to each of the definitions components: GDP Uses Market Value Its pretty easy to see that it doesnt make sense to count an orange the same in GDP as a television, nor does it make sense to count the television the same as a car. The GDP calculation accounts for this by adding up the market value of each good or service rather than adding up the quantities of the goods and services directly. Although adding up market values solves an important problem, it can also create other calculation problems. One problem arises when prices change over time since the basic GDP measure doesnt make it clear whether changes are due to actual changes in output or just changes in prices. (The concept of real GDP is an attempt to account for this, however.) Other problems can arise when new goods enter the market or when technology developments make goods both higher quality and less expensive. GDP Counts Market Transactions Only In order to have a market value for a good or service, that good or service has to be bought and sold in a legitimate market. Therefore, only goods and services that are bought and sold in markets count in GDP, even though there may be a lot of other work being done and output being created. For example, goods and services produced and consumed within a household dont count in GDP, even though they would count if the goods and services were brought to the marketplace. In addition, goods and services transacted in illegal or otherwise illegitimate markets dont count in GDP. GDP Only Counts Final Goods There are many steps that go into the production of virtually any good or service. Even with an item as simple as a $3 loaf of bread, for example, the price of the wheat used for the bread is perhaps 10 cents, the wholesale price of the bread is maybe $1.50, and so on. Since all of these steps were used to create something that was sold to the consumer for $3, there would be a lot of double counting if the prices of all of the intermediate goods were added into GDP. Therefore, goods and services are only added into GDP when they have reached their final point of sale, whether that point is a business or a consumer. An alternate method of calculating GDP is to add up the value added at each stage in the production process. In the simplified bread example above, the wheat grower would add 10 cents to GDP, the baker would add the difference between the 10 cents of the value of his input and the $1.50 value of his output, and the retailer would add the difference between the $1.50 wholesale price and the $3 price to the end consumer. Its probably not surprising that the sum of these amounts equals the $3 price of the final bread. GDP Counts Goods at the Time They Are Produced GDP counts the value of goods and services at the time they are produced, not necessarily when they are officially sold or resold. This has two implications. First, the value of used goods that are resold doesnt count in GDP, though a value-added service associated with reselling the good would be counted in GDP. Second, goods that are produced but not sold are viewed as being purchased by the producer as inventory and thus counted in GDP when they are produced. GDP Counts Production Within an Economy's Borders The most notable recent change in measuring an economys income is the switch from using gross national product to using Gross Domestic Product. In contrast to gross national product, which counts the output of all of an economys citizens, Gross Domestic Product counts all output that is created within the borders of the economy regardless of who produced it. GDP Is Measured Over a Specific Period of Time Gross Domestic Product is defined over a specific period of time, whether it be a month, a quarter, or a year. Its important to keep in mind that, while the level of income is certainly important to the health of an economy, its not the only thing that matters. Wealth and assets, for example, also have a significant effect on the standard of living, since people not only buy new goods and services but also get enjoyment from using the goods that they already own.

Superb electric cars you should know about

Superb electric cars you should know about 5 coolest electric cars in the world No doubt, electric cars can be called the automobiles of the future. Though a lot of people only start to accept these vehicles, trying to make a step forward from petrol consuming cars. The industry develops greatly and there are a lot of descent representatives among the electric cars range, which will astonish you and will not leave you indifferent. Our nature friendly future welcomes such cars and we suggest you to reveal all design and functionality options of these progressive cars. Tesla Model X A lot of specialists consider this car the coolest for now. Tesla Model X has outstanding design; its Falcon Wing doors give it special elegancy and refinement. The interior attracts its buyers with the windshield, which is panoramic, and touch screen for functions controlling. There are three models of this car available: Model 75D, Model 90D and Model P90D. All of them have two engines and differ in battery capacity and engine power. The car can have five, six or seven seats and its price range is from 132 to 142 thousand dollars. However, Tesla Inc. already plans issue of new breakthrough model in 2019. So, let’s arm ourselves with patience and see what the company has designed for customers and whether it can surprise us. Audi R8 e-tron Cool design of this car can hardly leave someone without interest. Two electric engines, which total capacity reach more than 450 horsepower, make it possible to move with 280 kilometers per hour. Huge lithium-ion battery is located in the bottom of the car and makes it possible to have rides with the 450 kilometers without additional charging, in comparison to 215 kilometers, which could drive its predecessor. The car’s charging station requires only two hours for charging the battery. The functional capabilities and outstanding design make this car a superb model for those, who want to own an electric car. Renovo Motors Coupe Designers of the Renovo Coupe developed design of this car similar to sport car exterior of the 60-70th. The retro style, combined with the classical interior, makes this car unique and not alike others. The classical interior is distinguished by the liquid-crystal control panel and astonishes with its luxury style. Electric engine of the Renovo Coupe has the 500 horsepower capacity and enables to pick-up the speed from 0 to 100 kilometers per hour in 3-4 seconds. The maximal speed of the car equals 194 kilometers per hour, which is quite impressive, taking into account the heavy weight of the car. The approximate price of the car is about 529,000 dollars and for sure it will be available to a limited number of people, but driving this car will be a great experience for any of us. Morgan EV3 The car is made by the British constructors and represents by itself an untypical automobile. You can drive almost 240 kilometers without charging and pick up to 145 kilometers per hour. If you want to be an owner of such unusual car, be ready to spend from 40,000 to 50,000 dollars. The only thing you should bear in mind is that this automobile has no top. So there can be two options, drive this car only when the weather is fine or get adjusted to any weather conditions. Honda CR-Z prototype This electric car is distinguished from the above mentioned cars by its four engines, which together make 450 horsepower.   The car is extremely fast and is designed for sport racings. Thus, in 2015 the car won the 11th place in overall and first in the Exhibition Class at the Pike’s Peak International Hill Climb. However, the idea with four engines is great; it still requires some improvements and modifications. Presumably, Honda will deal with this question in the nearest future. Apparently, these are the coolest electric automobiles nowadays. Unfortunately, they are unavailable for ordinary people, who ride bikes to work or students, who have a lot of concerns with their academic papers and limited budget. Anyhow, follow the latest researches and constructions and you never know, maybe tomorrow you will be driving one of those cuties.

Random Walk Theory of Share Price Movements Essay

Random Walk Theory of Share Price Movements - Essay Example A lot many efforts were made towards identifying a predictable trading pattern which could be used for chasing profitable deals. From the mid-1950s to the early 1980s, a random walk theory (RWT) of share prices was developed based on the past empirical evidence of randomness in share price movements. RWT basically stated that speculative price changes were independent and identically distributed, so that the past price data had no predictive power for future share price movements. RWT also stated that the distribution of price changes from transaction to transaction had finite variance. In addition, if transactions were fairly uniformly spread across time and were large in numbers, then the Central Limit Theorem suggested that the price changes would be normally distributed. Kendall (1953) calculated the first differences of twenty-two different speculative price series at weekly intervals from 486 to 2,387 terms. He concluded that the random changes from one term to the next were la rge and obfuscated any systematic effect which may be present. In fact, he stated that 'the data behaved almost like a wandering series' (random walk). Specifically, an analysis of share price movement revealed little serial correlation, with the conclusion that there was very little predictability of movements in share prices for a week ahead without extraneous information. In 1959, Roberts generated a pattern of market levels and changes akin to actual levels and changes in the Dow Jones Industrial Index. He estimated the probability of different share price movements over time by using a frequency distribution of historical changes in the weekly market index, and assumed weekly changes were independently drawn from a normal distribution with a mean of + 0.5 and a standard deviation of 5.0. He concluded that changes in security prices behaved as if they had been generated by a simple chance model .The fundamental concept behind random walk theory is that competition in perfect mar kets would remove excess economic profits, except from those parties who exercised some degree of market monopoly. This meant that a trader with specialized information about future events could profit from the monopolistic access to information, but that fundamental and technical analysts who rely on past information should not expect to have speculative gains.From the theory of random walks arose the theory of efficient markets. The Efficient Markets Hypothesis (EMH) states that current prices always 'fully reflect' available information, so that the only reason prices change between time t and time t+1 is the arrival of new information. The EMH requires that only two necessary conditions be met. First, the market must be aware of all available information .The type of information available is determined by the strength of the EMH being tested. In a Weak Form EMH, current prices entirely reflect all that can be known from the study of historical prices and trading volumes. If the Weak Form is valid, technical

Internet for Business Assignment Personal Statement

Internet for Business Assignment - Personal Statement Example And this event has been my chance. Having had Thortons' chocolates every day of my life here in UK, I am excelled at the chocolate tasting quiz and almost guessed all the chocolates presented to us. We spend the whole Saturday morning touring the locality and taking pictures of the lush gardens and other sceneries. During the afternoon, we attended a series of interactive workshops which includes sampling the dessert gallery collection which features some of my favorites from Thorntons. The highlight of the day was the opportunity given to the guests to create their own chocolate sculptures. I personally enjoyed this part of the weekend as I was able to experiment. However, the sculpture didn't turn out the way I want it to be. The presenters also educated us about the origins of the chocolate, how cocoa beans are transformed into chocolate bars as well as the process of making some Thorntons masterpieces. Our Saturday ended with a three course private dinner as we are serenaded by classical music which dates back from the time of Mozart and Beethoven. The last day of our Chocolate Lovers Weekend commenced with a sumptuous breakfast. I am surprised as one of the hotel staff brought free chocolates into our room together with fruits to be dipped in the chocolate fountain. I have always believed in you... Subject: Thornton's Chocolate Lovers Weekend at Hilton Tewkesbury Dear Sir Mike, I have always believed in your commitment in maintaining the leadership of Thorntons in the confectionery industry. The launch of Thorntons Chocolate Weekend at Hilton Tewkesbury which you envision to add more customer value proves to be correct having experienced the fun myself last week. The activities designed for this event highlights truly highlights the company's quest in making Thorntons a part of the consumers' daily life. Acquainting our customers on how they can make their own chocolate sculptures and fountains at home gives them the chance to delight their guests and loved ones using our products. Also, the incorporation of leisure, good music, and sumptuous meals further stress and link Thorntons chocolates with relaxation and indulgence. With all these good points however, I believe that the event can still be improved by designing different activities according to each guest's preferences. Having a different set of activities per weekend will not only customize experience but will enable the company to know more about the inclination of its customers. Having a weekend for teens will also be possible noting the fact that teens' spending on confectionery is increasing rapidly. I believe that with the number of people joining the event, the Chocolate Lovers Weekend will have an impact on internet business trends especially because the primary publicity used is online advertisement. Thorntons should continue informing customers about these events through websites that they visit. Sincerely, Your Name

The Nature of the Heart in Hawthornes The Scarlet Letter Essay

The Nature of the Heart in The Scarlet Letter  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚      Sacrificing of the soul and dedication can lead to suffering for some, but meaning in life for others. This is the main theme of The Scarlet Letter,by Nathaniel Hawthorne. The story takes place in the seventeenth century in Puritan New England. The main character of the legend is Hester Prynne, who has an affair with Arthur Dimmesdale, the minister, and they produce Pearl. Hester's husband, Roger Chillingworth is the town physician. He is seen as the healer, collecting magical herbs to make medicine. Hawthorne twists the purpose of the physician by turning these healing powers into vengeance for an unhappy man. Hawthorne takes the theme and symbolizes the different characters as a part of nature. He also uses imagery to show the different relationships between the characters. He achieves this by showing the dramatic differences between good and evil through light, darkness and shadows being cast upon the earth. When he does this, he draws the reader in and lets them visualize the human nature of struggling lovers. The story opens with a view of the Prison-Door. Near the door are glimpses of men and women surrounded by a cloud of gray. The first hint at nature is to "a wild rosebush, covered . . . with delicate gems . . . offer their fragrance and fragile beauty to the prisoner" (53). The rosebush was shown as the heart of nature that provided pity and comfort to any prisoner which was within its walls. Nearly seven years after Hester's public exhibition for her sin in the Marketplace, she and her young daughter are visiting in the Governor's Hall. Pearl was immediately drawn to the rosebushes in the garden. She begins to scream and throws a fit in her desire... ...eminders of how sinners can truly learn about what type of person they honestly are. Hester would always help people and Dimmesdale would never be true to himself about his religion. The doctor was perhaps the most significant character of the whole story. He would always help people, even if it meant helping them die. Pearl was the reminder of how a free person can really prevail. Hawthorne used his symbolism through nature to show how people develop and rediscover themselves and life. His symbolism also showed how different parts of nature die and how others thrive based on the way they decide to live. He made this connection with the sinners and let the readers picture the relationship between them by using the symbolism through nature.    "Works Cited" Hawthorne, Nathaniel. The World's Great Classics: The Scarlet Letter. New York: Grolier Incorporated.

Building effective technical skills

Chief operating officer The organization is headed by the COO. All the department heads will be reporting to him. The activities of all departments will be assessed and approved by him. 1. Legal & Statutory department: This department is represented by the Manager – Regulatory affairs. He will take care of all regulatory registrations, their renewals, their compliances, disputes arising due to non compliances, etc. He will be a line employee reporting to the COO. 2. Human Resources Department: Manager – HRD is the head of this department.He is a line employee who takes care of recruitment, training, remunerations, discipline, appraisals, outsourced services, etc. An Officer- HR, a staff employee reports to the Manager – HR. He takes care of time office, salaries and wages, documentation, coordination with other departments, etc. 3. Finance Department: Manager – Finance is the head of the department. He is a line employee taking care of budgeting, fund plan ning, taxations, accounting, auditing, etc. He is assisted by an accountant, a staff employee, who takes care of documentation, cash flow, ledger maintenance, day book maintenance, etc.Cashier, a staff employee takes care of billings, cash transactions, cash deposition, etc. He reports to the Manager – Finance. 4. Sales & Marketing Department: Manager – Sales & Marketing heads the department. He is a line employee taking care of market research, planning, promotions, advertisements, store design & set up, sales, customer feedbacks and complaints, etc Building effective technical skills 04 Executive – Market Research, a line employee having a sound knowledge about the type of books reports to Manager – Sales & Marketing. He utilizes his skills to forecastcustomer requirements and identify an adapted product mix from time to time. Executive – Media is a line employee, reporting to the Manager – Sales & marketing, taking care of media and magaz ine advertisements, promotional programs, etc. Executive – Stores Operations, a line employee, reports to the manager – Sales & Marketing. He is responsible for the store design, displays, maintenance, etc. He co ordinates with the Inventory department to organize stocks. Retail sales persons are staffs reporting to the Executive – Stores Operations. They take care of sales at various sales counters or sales zones.They are responsible for the packing and forwarding of the purchased books to the delivery department. 5. Inventory Department: Manager – Inventory heads the department. His span management includes procurement, warehouse management, inventory control, etc. He co ordinates with the Manager – Sales & marketing to ensure that the stock levels are maintained properly. Purchase assistant, a staff employee reports to the Manager – Inventory. He takes care of purchase order preparations, stock receipts, inward stocks verification, return of damaged stocks, etc. Stores assistant reports to the Manager – Inventory and he is a staff.He takes care of warehouse management, inventory control, documentation, etc. 6. Systems Department – Executive – Systems, is a line employee taking care of computer hardware, billing software, etc used by the organization. He reports to the COO. Co ordination Mechanism: The co ordination mechanism in such a book store is as follows. The Executive – Market research makes a thorough study of the market and prepares an adapted product mix. This is sent to the Manager – Inventory. The Stores assistant assesses the stock situation in the book store and the warehouse. He sends a stock report to the Manager – Inventory.Based on the market requirements and the stock situation, the Manager – Inventory prepares the Procurement plan. He directs the Purchase assistant to conduct purchases based on the procurement plan. This cycle repeats on a regular f requency. Comparison of a traditional book store and an online book store This is a traditional bookstore, operated by a traditional Hierarchical structure. The quantum of work involved is more and hence a relatively higher number of employees are employed. The information flows from the top level to the bottom level through paper correspondences or mail communications.These shops are slow in adapting to the market changes. The stocks are usually built and maintained based on the market forecasts. Hence, this type of stores usually carries a large inventory and hence requires a lot of space. This has a direct impact on the financial overheads. The book stores like â€Å"Barnes & Noble†, â€Å"Amazon† or â€Å"Border† are online bookstores since 90’s. They are E enabled business concerns. They make use of the web and the Information and communication Technology (ICT). Hierarchical flow of information is less. The flow of information is through digital mode and fast.They usually maintain low inventories. They take the order from the customers, procure the requirements from the suppliers and deliver them to the customers directly. Their inventory carrying costs are much lower. The quantum of work involved is less and the flow of information is more. The savings due to the reduction in the inventory levels are passed on to the customers. References 1. Electronic Commerce: Opportunities and Challenges by Syed Mahbubur Rahman, Mahesh Raisinghani 2. The E-Commerce Book by Steffano Korper and Juanita Ellis. 3. Electronic Commerce: The New Business Platform for the Internet by Debra Cameron

Democracy Essay - 1012 Words

Democracy has become the most widespread political form of government during the past decade, after the fall of all its alternatives. During the second part of the 20th century, the 3 main enemies of democracy, namely communism, fascism and Nazism, lost most of their power and influence. However, democracy is still only to be found in less than half of this worlds countries. China with a fifth of the total population had never experienced a democratic government and Russia still doesnt have a well established democracy. By adopting a democratic perspective, 3 types of governments emerge, non-democratic, new democracies, and old democracies, and all have a different challenge to overcome: either to become democratic, to consolidate†¦show more content†¦The whole Athenian experience shaped the political philosophy, even the way we understand it today. At the centre of the Athenian government was an assembly, which every citizen was able to attend. The role of this assembly was to select citizens for public duties. Whereas key positions were selected through election, other public duties were decided by lottery. Although this is the first record attempt of democracy, many of the ideas of that time have been ignored, when talking about modern democratic governments. Concomitant with the Athenian system, in the city of Rome popular government was introduced as well, albeit under a different name, respublica (from res Ââ€" thing and publicus Ââ€" public). Consequently the republic was similar with Greek demokratia. At the beginning only aristocrats or patricians were allowed to participate at the governing act, but after much struggle the common people [Â….] also gained entry (Dahl, 1998: 13). Only male patricians, later lower castes as well, were able to govern, meaning that women, same as in Athens, were denied any political rights. Starting as a city-state, the Roman Republic conquered territories far beyond its initial borders and gave Roman citize nship to the conquered people. Even though this system might seem sturdy, the impossibility to adjust the institutions of popular government to the increasing number of citizens and the ever-growingShow MoreRelatedDemocracy Is Not A Democracy1297 Words   |  6 Pages â€Å"Democracy... while it lasts is more bloody than either aristocracy or monarchy. Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There is never a democracy that did not commit suicide.† said by John Adams Defines our country s government to a tea Democracy commonly refers to a type of political system in which the people or their representatives lawfully govern themselves, rather than being governed, say, by a military dictatorship, totalitarian party or monarchRead MoreDemocracy : Democracy Vs. 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