Gross Domestic Product
Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living.
Standard of Living = Income
Standard of living refers to the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area. The standard of living includes factors such as income, quality and availability of employment, class disparity, poverty rate, quality and affordability of housing, hours of work required to purchase necessities, gross domestic product, inflation rate, number of vacation days per year, affordable (or free) access to quality healthcare, quality and availability of education, life expectancy, incidence of disease, cost of goods and services, infrastructure, national economic growth, economic and political and stability, political and religious freedom, environmental quality, climate and safety. The standard of living is closely related to quality of life.
Quality of Life (QOL)
Quality of life (QOL) references the general well-being of individuals and societies. The term is used in a wide range of contexts, including the fields of international development, healthcare, politics, wealth and employment, environment, physical and mental health, education, recreation and leisure time, and social belonging., freedom, human rights, happiness (as defined in "normal" terms) and security.
Gross National Product
Gross national product (GNP) is the market value of all the products and services produced in one year by labor and property supplied by the residents of a country. Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of production, GNP allocates production based on ownership.
The difference between GNP and GDP is more than interesting.
GMC (General Motors - Chevy) is a multi-national company. I have nothing against General Motors. This is just an example.
GMC pulls in income from all over the world. They have production facilities in China. The income to the company from all locations is GNP.
OWNERSHIP.
However, the GDP of General Motors varies globally. When the Gross Domestic Product of China is calculated it stays in China. The Gross Domestic Product of the USA stays in the USA. For every country on the globe the amount of product produced geographically within their sovereign borders is their GDP.
Okun's Law
The relationship between an economy's unemployment rate and its gross national product (GNP). Twentieth-century economist Arthur Okun developed this idea, which states that when unemployment falls by 1%, GNP rises by 3%. However, the law only holds true for the U.S. economy, and only applies when the unemployment rate falls between 3-7.5%. Other version of Okun's Law focus on a relationship between unemployment and GDP, whereby a percentage increase in unemployment causes a 2% fall in GDP.
The percentage by which GNP changes when unemployment changes by 1% is called the "Okun coefficient". Industrialized nations with labor markets that are less flexible than those of the United States, such as France and Germany, tend to have higher Okun coefficients. In those countries, the same percentage change in GNP has a smaller effect on the unemployment rate than it does in the United States.
Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living.
Standard of Living = Income
Standard of living refers to the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area. The standard of living includes factors such as income, quality and availability of employment, class disparity, poverty rate, quality and affordability of housing, hours of work required to purchase necessities, gross domestic product, inflation rate, number of vacation days per year, affordable (or free) access to quality healthcare, quality and availability of education, life expectancy, incidence of disease, cost of goods and services, infrastructure, national economic growth, economic and political and stability, political and religious freedom, environmental quality, climate and safety. The standard of living is closely related to quality of life.
Quality of Life (QOL)
Quality of life (QOL) references the general well-being of individuals and societies. The term is used in a wide range of contexts, including the fields of international development, healthcare, politics, wealth and employment, environment, physical and mental health, education, recreation and leisure time, and social belonging., freedom, human rights, happiness (as defined in "normal" terms) and security.
Gross National Product
Gross national product (GNP) is the market value of all the products and services produced in one year by labor and property supplied by the residents of a country. Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of production, GNP allocates production based on ownership.
The difference between GNP and GDP is more than interesting.
GMC (General Motors - Chevy) is a multi-national company. I have nothing against General Motors. This is just an example.
GMC pulls in income from all over the world. They have production facilities in China. The income to the company from all locations is GNP.
OWNERSHIP.
However, the GDP of General Motors varies globally. When the Gross Domestic Product of China is calculated it stays in China. The Gross Domestic Product of the USA stays in the USA. For every country on the globe the amount of product produced geographically within their sovereign borders is their GDP.
Okun's Law
The relationship between an economy's unemployment rate and its gross national product (GNP). Twentieth-century economist Arthur Okun developed this idea, which states that when unemployment falls by 1%, GNP rises by 3%. However, the law only holds true for the U.S. economy, and only applies when the unemployment rate falls between 3-7.5%. Other version of Okun's Law focus on a relationship between unemployment and GDP, whereby a percentage increase in unemployment causes a 2% fall in GDP.
The percentage by which GNP changes when unemployment changes by 1% is called the "Okun coefficient". Industrialized nations with labor markets that are less flexible than those of the United States, such as France and Germany, tend to have higher Okun coefficients. In those countries, the same percentage change in GNP has a smaller effect on the unemployment rate than it does in the United States.
