This glossary is going to be fun

Gross Domestic Product (GDP) is a measure of a country’s economic output. It is the total value of all goods and services produced in a country, regardless of who produced them.

No, it’s not.

Gross domestic product is a monetary measure of the market value of all final goods and services produced and sold by countries during a given period.

“Finally” is a very important point. It does not include intermediate products – no. And market value is also an important factor.

In addition, GDP also records the value of transactions although they do not add anything to the sum total of human well-being. For example, Alaska’s GDP increased significantly following a major environmental accident off its coast that resulted in a significant oil spill but did not improve the well-being of the state’s people.

no Alaska’s GDP increased because of the significant cost of cleaning up that pollution. And we think that cleaning up pollution is an improvement in well-being. That’s why we do it. There is a loss from the contamination, of course – a loss to the stock or balance sheet, not one that crosses the flow or P&L. But cleaning up pollution makes people richer which is why it’s in GP.