What is Gross Domestic Product (GDP)?

[@ArushaMediaTV]

you guys are far better than my lecturer

[@AjayPatel-so8zs]

Maybe you're just dumb bro

[@AlexESR71]

@@AjayPatel-so8zs First of all, becoming a lecturer requires you to know how to keep an audience intrigued. Second, most people just go to work to pay the bills, without love or real interest for what they do. They'll usually just do the bare minimum to make it to pay day. He's not alone on the fact that many youtubers make far better teachers than actual "teachers".

[@anntran3814]

my lecturer uses this video to teach us about GDP 🤷💯💯💯

[@PushPastMyLimits]

I don’t even have a lecturer, doing it online :|

[@AaronAmandaTsoi]

kzbin.info/www/bejne/qHK4oHpjZsmBnaM&si=beRqNw5ANDr0rZEz

[@shamnahusman6175]

One big hug to you guys for making these videos and helping neophytes like me to try and understand economics. Thank you

[@MarginalRevolutionUniversity]

Thank you Shamnah! Good luck to you! Econ gets a bad rap. It's fascinating once you dig in. That is, if you like understanding human behavior and the consequences! Best, Roman

[@jreynolds8079]

Shamnah Usman

[@feynstein1004]

@Myrrg Greenwich from Google, neophyte = a person who is new to a subject or activity.

[@faizansayed3670]

Thanks shamnah, I learned a new word because of you. '' NEOPHYTES''

[@johnabraham8520]

Faizan Sayed word?

[@georgeb8637]

0:23 - market value of all finished goods and services produced and sold in a year 0:49 - GDP = all the sold goods or services 1:06 We don’t count goods that baker buys in GDP - because those products will go into a finished product that will get sold 1:32 To calculate GDP - we seem to only add up goods sold to consumers (not businesses) 2:17 - if an old house is sold this year - but not produced this year - it does not count towards GDP 2:39 - imports add to countries GDP - so if you buy bottle of wine from France, the sale counts towards France’s GDP

[@axnnaandmikeyplayz5044]

Thanks man for making this I respect for your work for making timeline

[@noel7777noel]

Money making money is not supposed to be counted as GDP. This is what the Glass-Steagall Act was for. "Earning" interest rates is counted as GDP. [After the Glass-Steagall Act was repealed]. A business loan is counted as a business expense. Say if our banks have 75% unsecured bonds on the books. AKA ponzi scheme. That would include GDP. Home flipping is GDP. Now. If this financial ponzi scheme "GDP" stops. The world goes into a resection. Not that building real products ever stopped. Like a stock can go up but the company never sold more products. Yes. Ponzi schemes count as GDP. This is why if the financial system colaspes, it takes the real products with it. This is the Glass-Steagall Act.

[@ayushibaloni3631]

These guys have really made good efforts to make Economics interactive.

[@jacksonrowan2038]

This explanation is so broken down, clear and easy to understand and the analogies were spot on. Maybe of this guy was my 12th grade econ teacher, I wouldent have failed with a 58.

[@aliciajolley519]

Economics is incredibly hard to understand, but this video gave me so much information in such an easy way! Thank you!

[@charisjosh6743]

Honestly you guys are better than my lecturer. I understand this way better now. Thank you

[@StanDubin]

using your example, how do the folks calculating GDP know if the eggs were purchased and consumed versus the eggs being purchased to make a finished product?

[@eduardd.1086]

@@sanctumsomega how does that work exactly? i'm assuming smaller societies buy big quantities of products from bigger societies on a special market, but i might be wrong. can you explain?

[@craigistheman101]

Cristea Andrei usually Restaurants buy directly from a distributor or farm instead of through a supermarket

[@enderlinde3152]

@@eduardd.1086 one before one after I guess

[@pepbtw]

Clear explanation in layman terms with very simple example. Educational institutions need more teachers like you.

[@lisandrobarchiesi3008]

Thanks to this video I could answer the classic "are polar bears counted in GDP?" exam question

[@dilansankalpa1019]

I love these videos. It is very easy to understand and very informative. You are making a huge contribution to this world!

[@MarginalRevolutionUniversity]

Much appreciated! -Roman

[@TheImmukhan]

great video !! presentation and animation made it so easy to understand the GDP !! thanks for uploading

[@MarginalRevolutionUniversity]

In this video, join us as we show you how to make sense of this important economic indicator. You’ll learn how GDP is computed, and you’ll get answers to some pretty interesting questions along the way. Macroeconomics Course: bit.ly/3aAmKj2 Interactive practice questions: mru.io/jzz Next video: bit.ly/39skokV

[@roberth7725]

What if the consumer that used the eggs for omelets ends up selling the omelets to someone...how then will the GDP be calculated if the seller has no idea how the consumer uses the purchased product? In the case the seller doesn’t know if she uses the eggs to make omelets and then sells the omelets

[@yaf8034]

What if you bought parts from another country and you assemble the parts and sell it in your country. Does that count as the GDP of the country you bought the parts from or as you out country GDP?

[@noel7777noel]

@1:13 is a math error. No half baked plans. You can't count reselling DP. That is counting DP twice. The baker bought DP (the ingredients). He is a paying customer of the flour. And these products are already accounted for. The flour company takes the credit for that flower DP. The baker's DP is the difference. Subtracting other people's work. Minus all "business experiences". Basically, just his salary. It there are 300,000,000 people in a country. GDP would equal employment paychecks. Well. Unemployed people don't produce a DP. The opposite. The baker must subtract other people's DP. And only count his contributions in this acceptably line. Each expert (capitalist) would create his own part of the item with simple tools. Each expert (sub contractor) would create his own part of the item with simple tools. Each expert would create his own part of the item with simple tools. And join a union for protecting his capital (one makes). Than if you adjust for inflation. The math equation would be deducted to "per capita". Basically the unemployment ratio. It's a math formula for unemployment ratio. If you had a country with 100% unemployment, you would have zero GDP. Just add all thier paychecks of the acceptably line workers. Per capita; for each person; in relation to people taken individually. ÷ or fraction. Now I know this is measured on bought DP. But I can't spend what I don't make. And filing our taxes keeps track of one but not the other. A math prodigy does math backwards. This is an example of math backwards. Math backwards is a speed trick. Notice how the flour was counted twice going the other direction.

[@nik4546]

An absolutely brilliant explanation! Thank you.

[@MTCTryder]

1.5 hours of boring class in 4.5 minutes in a fine and good peace video. Thanks for making this (:

[@josephdavis1704]

"economics for middle schoolers" meanwhile 99% of American adults: "GDP? is that something to do with climate change? is that a food additive?"

[@AsianBoiGallore]

It amazes me how this 4 minute video covers over 50 pages of my college text book, and I understand the subject more though this video.

[@commentscorner617]

Simple, clear and to the point, What's not to love

[@digvijayjoshideejay_live2i811]

Firstly, i wanna thank u for explaining these concepts in a very simplest manner...!!! Now my question is with respect to finished good and intermediate goods..... As you have mentioned if a bakery buys eggs it will not be counted, but if a consumer buys it, it will be counted, so how does the supermarket come to know purpose of buying or i would say how would they come to know if its for commercial use or domestic?

[@spartan187]

Through store channel i guess, if a retail store is selling than most likely it is for end consumer But if a distributor( distributor are not manufacture) is selling that it will be mostly likely to retailer like super or hyper markets and so on. In Bakery owner product will be on deliverable or reselling. As long as complete Product is delivered to consumer it will be considered. this is my assumption only. so GDP data is collected from 2 points 1 Manufacture 2. point of sales.

[@shardulkulkarni3999]

@@spartan187 So, would you count cement in the GDP or not ? Cause cement industry is a huge industry but house/building is the finished good here and hence only houses should be counted in the GDP. Wouldn't adding up the numbers of cement industry give an idea of real estate of the country ? Cause counting number of NEW BUILDINGS is a quite a difficult task but as cement industry is dominated by only 3-4 companies here in India, wouldn't it be easy to add up their financials to get an estimate?

[@otm777]

I had the same question! What if a baker (or restaurant owner) buys products from a supermarket which are then used in their business to produce a finished good. Seems like the individual products, albeit small in value, would be counted as a finished good at supermarket level and then counted "again" as a finished good at the business level. This example probably doesn't have a "major" effect on GDP, but it's clear GDP is not a perfect number, more like a good estimate of market value.

[@mrsshaukat9669]

This vid is about nominal gdp( gross domestic product ) Nominal gdp: market value of finished goods and services produced within a country in a year. Finished goods : goods that won't be sold again as part of another good * Finished goods are sold directly to comsumers * Finished goods are counted in gdp Eg eggs sold to consumer ( to eat) Intermediate goods : a good that when sold becomes part of another good * Intermediate goods are combined to make finished goods * Intermediate goods are sold to business and manufacturers, etc . * Intermediate goods are not counted in gdp. Eg eggs sold to bakeries ( to make cake) Capital goods : goods that are used to make other goods though they dont become part of another good * These are counted in gdp Eg tractor used to produce crop Produced in a year : Gdp of a particular year doesnt include goods produced in otger years Eg an old house built in a previous year but sold this year is not counted in gdp of this year . A house produced and sold this year is counted in gdp Produced in a country : Gdp of a country doesnt include goods that are sold in the country but were produced in another * French wine sold in usa contributes to France's gdp * USA's tech sold in france contributes to USA's gdp * Exports are counted in a country's gdp and imorts aren't Market value : Goods not sold in a market arent counted in gdp because there is no set value of such goods and this can create problems in computation as diff statisticians will come up with diff numbers for gdp . Real Gdp can show standard of living(next)

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[@CristianHulbert]

@Anderson Varley WOW!!!. I will be retiring early and i want to grow my $380k . Please who helped you and how can I count on him/her?

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[@noel7777noel]

#FBI "financial freedom" is literally banking fraud criminals to avoid work. This is what the Glass-Steagall Act was for. Money making money is not GDP.

[@alparslankorkmaz2964]

Nicely explained.

[@TRENDVFY]

6yrs ago and still better explanation than CNBC

[@wyattblah]

Thank you for a straightforward video.

[@rondickey7116]

Very well explained, I've learned more economics from ur 4mins video, than wht I've read...ty

[@dalurinzinia829]

this video explains everything so clearly and in a simple-to-understand manner, thank u so much for making this video !!

[@stuffhappens7152]

It is also measured quarterly to see where we are in the economic cycle. Two consecutive quarters of negative (falling) GDP indicates a technical recession.

[@YourMum44056]

Holy crap, I've searched and searched. This video was all I needed.

[@domoso2794]

thank god! this is even better than spending an hour on a GDP lecture

[@kennytheclown3859]

Interesting. Very concise.

[@alltimechiller]

Very well explained. Easy to understand. Subscribed!

[@ashirjawad347]

I just love this channel ❤️

[@guilhermeadan2329]

very good production/editing as well

[@jashuar]

This is amazing holy cow

[@MarginalRevolutionUniversity]

Thank you! -Roman

[@beboysub]

Thank You

[@Mohdzn]

Wow, after watching many videos this one really helped me out

[@farzadsole6021]

Thank you so much for this useful and informative video, keep up the good work guys :) Many thanks Greeting from Iran ❤ Cheers

[@yeezy3590]

Learnt more from this than my teacher thanks

[@Intothemarket101]

Thank you so much for sharing this useful data! Greatly appreciated.

[@nandanassudheer1517]

Crystal Clear explanation

[@abdulrahmannawaf9120]

really nice video presentation, simple & easy. Thank you !

[@noumanahmed1017]

Keep up the good work brother.

[@youraliensister9642]

Love these videos

[@Telling_yuhmusic]

Good teaching 👍

[@krishnachaitanya7435]

Crystal Clear video ... Thank you for this video 👍

[@yashvikudrigikar8943]

Thank you for such detailed explanation

[@PaolaSanchez-hc5my]

Bravisimo! Thank you!

[@mooncrystalrose]

Very informative 👍

[@gillian5871]

Thanks for the clear explanation of GDP

[@premangsupal1077]

Awesome video

[@danielrizzo4927]

Excellent!

[@ashishaheen4454]

Waaaw I like ur vedios so easy thanks thanks sir🥰👍👍

[@phiaowo3999]

Excellent!!!!!

[@ararin04]

YOU SAVED MY LIFE

[@Amad3u1]

Great video clear and concise explanation.

[@wilbcn]

the video starts saying goods and services produced, then goods and services sold and then again goods and services produced. It's not the same...my question is, if GDP measures goods and services produced (not sold), which information do statisticians gather in order to calculate GDP? Companies' sales +/- inventory variation?

[@andivlogs]

So helpful, thank you! 😊

[@yylee1360]

EASY TO UNDERSTAND THANKS

[@camillewilliams8133]

Thank you for all these wonderful videos as i not only ace my exam , i understand the concepts economics and apply them in my everyday life .. Thanks a million.

[@romeshkirpalani848]

Very useful❤

[@TimePass-jh2ew]

மிக அருமை....!!!

[@ChaiTabunaway]

well explained!

[@asmanusairi1308]

I loved the videos, thank you alot !!

[@techtree1555]

way better than my university lecturer. In my university lecture even the front row is sleeping.

[@VanessaGraulich]

Excellent Video !! I use it for my Instagram tutorials. Incredible channel

[@alexkunovac9479]

Awesome video keep it up

[@Shona_thecatalyst]

wow thanks for making this so easy to understand! i get it now. subscribed and looking to watch more videos

[@sakeshkhaira3995]

You really explain good with better example it really makes easy to understand me thanks.😀

[@statsuniverse155]

GDP is really interesting ! I like these stattistics.

[@sinseven6035]

awesome video

[@SCUSlayer]

Seriously...THANK YOU!!!

[@havenlamarche4682]

Awesome explanation

[@khannnnnn1471]

Excellent

[@gabrielgabro4755]

Realy nice....thank you for your efforts

[@rinawidi6734]

Thank you so muchhh i love this video

[@divyabksunar1986]

very understandable thanks!

[@daylightriot5671]

Would be handy to mention that this is the output measure method of calculating GDP. Great video though, examples were relevant and on point.

[@ashutoshdwivedi4513]

Definition doesn't include selling of the product. Suppose a slipper reaches a market then it would be included in GDP only if it gets sold but by definition it should be included as it is produced.

[@yili5055]

What does it mean when a news report says some percent of a country's GDP is debt? Does it mean this many finished goods are produced from borrowed money?

[@samuelmachiridza9643]

Thanks for this video now I can understand better

[@dianacamelia2426]

I loved your video so much, thank you for the efoort of making macroeconomics clear and easy to understand! Does anybody else have a problem when trying to enter the practice question website? I do not know why but mine isn”t working.

[@kinzahamiz6270]

Amazing explanation

[@moneyRalf212]

I got lost with the polar bear example 😂😂

[@Anna-ob4oh]

Guys, your videos are great! Thanks a lot! However I do have a question: The apple computer in your example is actually produced in China but designed in California. So does the finished computer then add on China's GDP or the States' one? Thanks for your answer! Cheers

[@zimuzeng]

GDP can be calculated using the incomes generated from the sale of goods and services. So say Apple sells the computer for $1000. Of this 1000, 200$ must be spent on buying the raw materials (processor, etc) from Taiwan. So Taiwan makes 200$ from the sale of this computer, hence Taiwan gets 200$ GDP. These raw materials are then assembled in China into an actual computer, and let's say the Chinese workers who do this get paid 10$. Then the computer would add 10$ to Chinese GDP. However much money is left (790$), is Apple's profit, which counts towards US GDP. All of these numbers are made up but it illustrates how GDP is split between nations.

[@User10thmillion]

An na I think because apple is an American company?

[@rohanchoudhary1050]

What an awesom video

[@divyasekhani4705]

do we include sale of animals like horses, camels or say cattle in gdp? Also, if I'm constructing a house for my own use, then at what stage do I include it in Gdp? I was even wondering if plants, trees (bamboo, sandalwood, flowering plants) are included in Gdp?

[@guilhermeadan2329]

great analogy!

[@johnnydoe2672]

Good time to learn how terrible the US economy is right now. Thanks for the great video!

[@TheZirodent]

Excellent video. I have a question, if mac computer is made in China, is it part of Chinese or US GDP?

[@ThatoFX]

Is your macroeconomics course organized in order?

[@Ram-fi9dt]

Do the goods have to be necessary sold to be counted in GDP, even without being sold the goods retain its MARKET VALUE right? So imagine a country produces lots of goods and never sells it, will that be counted in GDP, how does that go about? Anyone willing to clarify?

[@NurulHidayah-nw9gz]

i want to ask the same question!

[@dcoin1793]

What's the point of producing a lot of goods when nobody buys them. Only idiot company will do that. No demand = no production.

[@ravenousclouds_]

My teacher in economics told us that eventhough it wasn't sold but it was produced in a year then it is part of the GDP.

[@bee-jb7rl]

i’m in 10th grade and my economics final is next week... wish me luck!

[@awaisjunaid3773]

marvel marble best wishes!

[@omf13gamer4]

Bro I’m in 10th grade and in economics to

[@dukeofdepressed3980]

@@omf13gamer4 Did you pass man?

[@drewacabu3166]

Informative

[@ajayvishwakarma6553]

Thanks sir giving this great information with great presentation

[@edfleurs]

Finally someone with a good English, other channels are Indians speaking english

[@carlettagoodrichmann1513]

Informative and the stock market evaluates the supply and demands of the nations productivity from generation to generation .

[@drallisimo34]

cool lesson!!!

[@theuniverse8937]

WOW great!

[@mohamedabozekry937]

Smooth and easy best simplifications

[@Kleo3392]

Is it me or do they not teach this shit in school, like you’re just supposed to figure it out yourself. Am I the only one who finds economics so taxing, no pun intended?

[@faizansayed3670]

Its almost everywhere I believe, this how its taught at school level that no one understands.

[@kyalol3745]

Kleo3392 they do now i have a test on it tomorrow

[@binozia-old-2031]

I’ve had to figure most of the stuff up my self