MGTA01H3 Lecture Notes - Lecture 6: Gross Domestic Product, Business Cycle
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MGTA01H3 Full Course Notes
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Come up with some system that allocates for some responsibility of the goods and services that people need and want. Purpose of economic system is to mobilize the things people need and want. An economic system should produce: lots of things that people need and want more with each passing year lots for each citizen doing a lot with finite factors. Next week: using all the available factors share the benefits between all citizens. Total value of all goods and services produced by an economic system (typically, in a year). A country with large gdp: suggests: many workers, using many factors, producing many things of high value. A country with small gdp: suggests: fewer workers (small population), using less capital, producing fewer things of less value. Gdp is also calculated for provinces, states and cities. Gdp measures an economy"s size (size is not unimportant) As the population grows, we need more food, more clothing, more shelter.
