In this video, GDP for GDP!

Gross Domestic Product: let’s Go and Define it, People!

Gross domestic product is the total market value of the goods and services produced by a country's
economy annually.

And the reason why there’s a need to measure it? is that it indicates the size and growth in economic
output and performance. It gives way to assess and understand on what actually drives an economy.

However, it also has its shortcomings and limitations:

In CERTAIN NONMARKET GOODS AND SERVICES: It’s simply as when you cook and clean for the
household. Useful outputs yet unpaid are omitted in the GDP.

In UNDERGROUND ACTIVITIES: when you make vlogs in youtube but your income is unreported to evade
taxes! Illegal activities involved are omitted.

In SALES OF USED GOODS: if you sell your used 2015 model car this year It was already included in
2015’s GDP that’s why it’s omitted in this year.

In FINANCIAL TRANSACTIONS, as you trade stocks. It has no production and only a transfer of ownership
so this is also omitted.

In GOVERNMENT TRANSFER PAYMENTS, like Social Security benefits. This is also not payment to
individuals for current production, therefore omitted.

In LEISURE, the time you spend on reading books to relax. This is also omitted in the GDP.

So, if even you have shortcomings on your relationship, so is GDP! That’s all, thanks for watching!