Comparison of the Economic Ideas of GDP Growth - Essay Example

Comments (0) Cite this document
This essay talks about the most common contrasting views of economists on the economic development of a country. The ideas to predict development in different countries include United Nations Development Programme human development ideas, the neoclassical view of utility and the macroeconomic idea…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.8% of users find it useful
Comparison of the Economic Ideas of GDP Growth
Read TextPreview

Extract of sample "Comparison of the Economic Ideas of GDP Growth"

Download file to see previous pages 27). The human development idea of the UNDP emphasises some factors like education, life expectancy, gross national income and other issues that are standardised in the three main factors as a measure of people’s capability. The idea is that those who have a long life, have attained high education in a country that has high gross national income are likely to be very productive. This is because these people will be able to choose different economic activities that can bring income for their own as well as contribute to the economy of their country. On the other hand, it implies that if a person lives a short life, have low education attainment in a country that has low gross national income he or she is likely to be very unproductive. This is because they will contribute to very little benefit to the country in which they live since they have very few choices to make in the pool of economic activities available to all people. The human development idea of the UNDP emphasises the importance of both resources and capability to exploit them so that they can increase the income or benefit to the people and consequently impact the national economy. According this idea, availability of resources without capability to exploit them has no advantage to the people who have them (United Nations Development Programme, 2000, p. 12). The neoclassical view of utility is an idea that presents a different perspective into the explanation of development or the economic growth of individuals and consequently that of the country. The idea of the neoclassical view of utility explains that people’s preferences are important in determining the things they can do in the economy to increase their individual income and consequently that of the country. This means that a...
This essay presents one of the best examples of theoretical comparison of three most common ideas of economic scholars on the growth and development of economy. For the UNDP’s human development, capability is important to enhance economic growth, to the neoclassical view of utility, what people choose to do is important and according to the macroeconomic idea of constant growth, the economic performance of the wider economy is key in determining growth in an individual or institution.
The UNDP idea of human development as a determinant for growth of economy explains that management of abilities of the people is important because it influences their involvement in economic activities. Economic growth happens in situations where people have wide areas for making choices.
The neoclassical view of utility is an idea that presents a different perspective into the explanation of development or the economic growth of individuals and consequently that of the country. The idea of the neoclassical view of utility explains that people’s preferences are important in determining the things they can do in the economy to increase their individual income and consequently that of the country.
The macroeconomic idea of constant growth of GDP is an important way of explaining the development of a country or an individual. This idea focuses on the performance of the larger economy as a factor in determining the growth of individuals. The economic growth therefore is not dependent on the opportunities’ availability or an utilities.
...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Comparison of the Economic Ideas of GDP Growth Essay”, n.d.)
Retrieved from
(Comparison of the Economic Ideas of GDP Growth Essay)
“Comparison of the Economic Ideas of GDP Growth Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Comparison of the Economic Ideas of GDP Growth

Economic Comparison between Brazil and Argentina (Economic Development And Growth)

...rebounded and 8.5 percent growth in GDP was experienced in 2010. The Argentine currency is Argentina pesos. In fact, Brazilian geographical area, population, and economy is larger than that of Argentina. Argentina’s economy is less stable and volatile as compared to that of Brazil due to many past economic hardships. In 2008-2010 global financial turmoil, Argentina experienced diminished domestic growth as well as reduced domestic and global demand, which caused a mild recession in 2009. In 2008, many more people in Argentina are poorer than those in Brazil. In 2008, the population below poverty line in Brazil was 26 percent while there are 30 percent in Argentina....
8 Pages(2000 words)Term Paper

Economic Portfolio - Economic Growth

...Economic growth: In every economy, there are always four main macroeconomic objectives which are, price stability, economic growth, balance of payment and full employment. To achieve this objective, both fiscal and monetary policies have to be implemented. Normally for any particular economy, both social and political problems are the key factors relevant in achieving all the four objectives. Fiscal policy refers to expenditure and taxation policies central government, that are implemented by the ministry of finance through special agencies, directly or through area ministries, where as, monetary policies are the government’s regulations of the interest rate level and...
3 Pages(750 words)Coursework

GDP Growth

...? GDP Growth Introduction Financial increase involves transformation of the financial system. Forms of banks and bank money change. The alterations that occur if not addressed leave the banking system susceptible to crisis. There is no better test in economics than to recognize and thwart financial crises. The fiscal crises of 2007-2008 provide the prospect to re-evaluate our considerations for prevention of crises in the future. All monetary crises are at core bank flows, since bank debt of any kind is vulnerable to abrupt exit by bank arrears holders. The crisis raises concerns for crisis hypothesis. In addition, empirically, studying crises is exigent as small samples and partial data...
8 Pages(2000 words)Essay

GDP growth

...In today's economic climate, any company that hasn't borrowed as much as it can is crazy Introduction Economic growth of a country depends upon its GDP growth. GDP is an indicator of a country's production of goods and services. Finance (capital) a scarce factor of production is required by firms at the highest possible level to maximize production. All over the world, of late, countries follow the pattern of consumption economy wherein consumption is encouraged by giving out loans to consumers for purchase of goods, services and even homes.. This in turn leads to spurt in volume of production of goods and services at all levels to cope...
6 Pages(1500 words)Essay

Econometrics ; GDP growth in US

...GDP Comparison of US and China The period between 2001 and 2004 has witnessed tremendous GD growth rates both for the United s and China. While the US economy grew by over 19.5% during this period, the Chinese economy grew by over 60%, an increase of 33% in direct comparison with the USA (Thomas Rawski, 2009). Between 2004 and 2008, the Chinese economy, which holds the current record as the fastest growing economy in the world, registered a GDP surge by 106%. The performance of the USA during this period has been relatively slack considering the fact that the growth deficit vis-a-vis China increased from 16.4% to almost 28% during this...
2 Pages(500 words)Essay

Economic Growth increase in the production capacity of goods and services in an economy. (Encyclopædia Britannica, 2008) It is also seen as the increase in the standard of living of the society as a whole. Its normally calculated by comparing the Gross Domestic Product (GDP) of a country from one year to another. There are various driving forces contributing to an economic growth, namely, improvement in technology and productivity, increases in the levels of economic activity, efficient Human resource management, greater access to capital resources, etc. Economic growth is essential because it drives the country towards improved standards of living...
4 Pages(1000 words)Assignment

GDP Growth of Apple Company

...As firms such as Apple continue to grow, one of the core considerations for that must be taken is with respect to how GDP impacts upon the future development that such a firm will seek to represent. Naturally, the goal is to sell as many units of Apple products/services to the most number of individuals possible. However, such a simplistic strategy cannot be so easily accomplished without understanding the unique dynamics that economic factors have with regard to purchasing power parity and the overall economic strength of a region. As Apple products and services are primarily a luxury good for individuals within relatively developed nations, the focus that Apple should take is upon representing the main focus of their strategy... such as...
2 Pages(500 words)Essay

Economic Growth

.... As a result, less is available for spending on investment opportunities thus leading to slow economic growth. Moreover, with increment in government on infrastructure and other facilities, taxes will rise hence straining the working population wages to the extent that they will have less to spend on economically productive activities thus leading to slow economic growth (George, 8). Externally, Singapore faces competition from other established nations like China, Asia and Germany. Singapore is finds it difficult to cope up with such nations since it has limited resources to produce its exports as compared to these neighboring nations. Due to this, it...
8 Pages(2000 words)Essay

About GDP, Unemployment, Inflation and economic growth

...Sur when due: Macro Spring a. Nominal GDP=sum of the current year price*current year quantity of all the goods. 2009: (100*2) + (50*6) =200 + 300 = 500 2010: (75*5) + (65*10) =375+650=1025 b. A real GDP= total of the base year price*current year quantity of all the goods. 2009: (100*2) + (50*6) = 200+300=500 2010: (75*2) + (65*6) = 150+390=540. c. Real GDP growth rate= (Real GDP this year- Real GDP last year)/ Real GDP last year. (540-500)/500 = 0.08 2. GDP=C+I+G+NX. (885+300+350+35)=1570. 3. a. Business cycle. Upward and downward fluctuations for economic growth and...
1 Pages(250 words)Assignment

China's economic growth

...of time, suggesting that there is intelligent design to the way in which they are approaching their future in the global economy. A-3: Economic Growth China’s real growth rate is 7.4% for 2014. The gross national savings is at 49.5% of the GDP (CIA World Factbook, 2015). However, in the first quarter of 2015 Chinas economic growth slowed down as much as it had occurred in 2009 when the entire world was suffering from an economic downturn. In the first quarter of 2015, gross domestic product had expanded by only 7%, down from the first quarter of 2014 when growth was at 7.3%. However, Andrew Colquhoun...
4 Pages(1000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Comparison of the Economic Ideas of GDP Growth for FREE!

Contact Us