Money & WorkFact

Cook for your family and GDP drops. Almost.

Gross domestic product only counts what is produced for money. If you cook yourself, care for your parents or fix your own bike, none of it shows up. Pay someone to do it and GDP rises. The economy is bigger than the number suggests.

Useful: When politicians cite GDP growth, ask what the number doesn't see.

Source: de.wikipedia.org

BipStatistik Wirtschaft

Difficulty:

Related cards

How to fit an entire economy into one formula.The expenditure approach adds four items: private consumption, business investment, government …
One hour of work a week and you aren't unemployed.Under the International Labour Organization definition, which Eurostat also uses, anyone who worked …
Why €1,000 buys more in Lisbon than in Zurich.Comparing incomes across countries by exchange rate alone distorts the picture: a haircut in Sofia …
The two-quarter rule is a rule of thumb, not a definition.Popularly, an economy is in recession when real GDP shrinks for two consecutive quarters. In the …
Falling prices sound great. Economists fear them more than inflation.If everything is cheaper tomorrow, you postpone buying. Firms sell less, cut prices, cut jobs, and …
How statisticians turn thousands of prices into one inflation number.Statistical offices record the prices of hundreds of goods and services every month, from bread to …
Inflation has two engines, and they need different brakes.Demand-pull inflation happens when too much money chases too few goods, for instance after stimulus …
Trade pays off even if you're better at everything.David Ricardo showed in 1817: even if Portugal makes both wine and cloth more cheaply than England …

Keep reading

This card belongs to the topic Money & Work. Every card is short, cites a source and can be saved – due ones come back by themselves later.

About Doomlearn · Projects · Legal notice · Privacy · Terms