New answers tagged

2

This problem is endemic in Communist countries. I grew up in Cuba in the 1970s and we had the same problems with temperate fruits. Apples and pears, and even strawberries which should grow in Cuba were virtually nonexistent and impossible to buy. I think the other answers are missing a crucial reason for these shortages. The main reason is what @1muflon1 ...


0

As a side note, GDP per capita is a measure of the (average) standard of living. If GDP per capita increases then people (on average) are better off. I keeps saying 'on average' because it is possible (and seems to be actually happening) that some people see no improvement in their standard of living while others benefit greatly. But note that in this ...


3

By the way, after a house is built (whether it was built this year or many years ago) it does provide economic value. If renters live there, then the rent they pay is counted as a service in GDP. And if the home owners live there then the same thing happens, the government estimates the 'imputed rent' and that is counted in GDP.


10

Purchasing new homes would count as an investment. According to Blanchard et al. Macroeconomics: a European Perspective pp 568 in glossary investment is defined: Investment (I): Purchases of new houses and apartments by people, and purchases of new capital good (machines and plants) by firms. The source above is the leading undergraduate macroeconomics ...


1

The data provided by Statista are estimates of public expenditure to GDP ratio for year 2017 while the Eurostat data are for year 2019. Consequently I do not see any a priori reason why the two series would be expected to match. They are not necessarily contradictory as they are for different years. Furthermore, I can't see the information on Statista on the ...


2

Output usually falls during certain quarters/months and for many countries it is in the winter. Tourists usually travel for vacations in summer when kids also get long summer holiday. Farm work is highly seasonal and there is more of it in summer than winter (as pointed out by @dismalscience in an excellent comment construction is seasonal too) etc. As a ...


0

Capital investment is generally considered a positive for the economy in which the investment takes place because it increases productivity (more goods or services per unit labor input). To use a simple example, if you had a factory of people who hand sew dresses and then made a capital investment to buy sewing machines, those same people when trained to ...


0

One thing that could be made more explicit is that the capital is presumably for export employment and the existence of these employees will require additional local employment. Export employment is a job that produces a product for outside the city, local employment produces a good/service internal to the city. To use your example, if a car factory brings ...


Top 50 recent answers are included