Transcript The Economy can be Counted

The Economy can be
Counted
Citizenship: Introduction to Economics
About the Unit
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In the Introduction to Economics Unit we will be exploring the
following questions:
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Why do we have private property?
Why do we have money (currency)?
What is inflation?
How does money and goods flow between producers and
consumers?
Why are some goods/services more expensive than others?
How the economy can be measured?
The Economy can be
Counted
Historical Examples
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1620 - English Scientist Francis Bacon argues for a new scientific
approach based on the collection of facts.
1623-87 - English Scientist William Petty applies new fact based
scientific approach to economic and political affairs.
1693 - English statistician Gregory King writes “Great Statistical
Survey of England’s Population.”
1930’s - Australian Economist Colin Clark invents idea of Gross
National Product (GNP), which is the value of all products and
services produced over an entire year based on location of
ownership.
1934 - Russian-US Economist Simon Kuznets develops modern
national accounting methods, including Gross Domestic Product
(GDP). GDP is the value of all the products and services produced
over an entire year based location of production.
Videos
• https://www.youtube.com/watch?v=1Il5I
QHcYP8
Summary
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The total expenditures of a given population can be subtracted from
the total income of the population to find the total value of labor,
which is a way to measure the economy.
The most common way in which the economy is counted are GNP,
which refers to the total value of goods/services based on location
of ownership and GDP which refers to the total value of
goods/services based on the location of production.