Right so, here's my excuse for blogging again.
Remember that question that came up on Monday, about why intermediate goods are not included in the measurement of GDP? Well, I've been rewriting my notes while using the Demidec Econ Power Guide (that thing is a godsend. Like seriously, clear as friggin' day and has wonderful examples. Econ group should use it as a resource when presenting!!!) and here's what it says...
(well actually, this is what I've rewritten in my notes...)
Finals goods- goods which are consumed, not used to produce anything else.
intermediate goods- goods which are used to produce other goods. Not counted in GDP cuz that would be "double-counting". Value of intermediate goods should be reflected in the market value of final goods.
Kay? So stop flippin', yo! Those apples that were originally sold for consumption but used to make juice to sell will be taken out of the "final goods" category and thus taken out of the GDP calculation.
Not that a crate of apples or two will make much of a difference...
Anyway, now that THAT'S out of the way, I just wanna mention the statistic that made me want to blog.
Page 83 of the power guide:
1. In 2009, US had the highest nominal GDP ($14.3 million)
To this, I went YAY! We're number one still! But then--
2. In 2009, US had a per capita GDP of $46,381 (making us 6th in the world).
I was like SAY WHAA?!
LOL. Yeah, just a bit Seewah-silliness.
Ciao, now!
