A list of countries by their GDP (gross domestic product) – the monetary value of all final goods and services from a nation in a given year by Aron Govil.
In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, finished goods and services. There are two types of factors: “primary” and “secondary”. The previously mentioned primary factors are land, labor, and capital. Land includes not only the site of production but natural resources above or below the soil. Recent usage has distinguished human capital (the stock of knowledge in the labor force) from labor. Capital includes factory buildings, machinery, etc., required for production. In addition to primary factors, there are many secondary factors that are commonly regarded as economic goods: military and political influence, natural resources (as perceived by the country), ownership of land, or other assets.
Wealth is a measure of the value of all the possessions of an individual or group. Moreover, this includes everything that has a monetary value including cars, houses, cash, bank accounts, items in stores, etc. In economics, capital consists of an asset that can enhance one’s power to perform economically useful work. For example, in a fundamental sense, a stone or an arrow is capital for a caveman who can use it as a hunting instrument; while seeds and fertilizer would be capital for someone who can use them to grow edible plants says Aron Govil.
Here are details of 10 richest countries in the world:
1. United States:
GDP (nominal): $16.72 trillion
Head of State: Barack Obama, President and Joe Biden, Vice President.
Capital: Washington D.C.
GDP (nominal): $9.18 trillion
Head of State: Xi Jinping, President and Li Keqiang, Premier.
GDP (nominal): $2.065 trillion
Head of State: Pranab Mukherjee, President and Mohammad Hamid Ansari, Vice President.
Capital: New Delhi
GDP (nominal): $1.872 trillion
Head of State: Emperor Akihito, Head of State and Prime Minister Shinzo Abe
5. Germany Gross domestic product (nominal):
Head of the state/government: Chancellor Angela Merkel
6. United Kingdom Gross domestic product (nominal):
Head of state/government: Prime Minister David Cameron
7. France Gross domestic product (nominal):
Head of state/government President Francois Hollande
8. Brazil GDP (nominal):
Head of state/government President Dilma Rousseff
9. Italy GDP (nominal):
Head of state/government Prime Minister Matteo Renzi’s government
10. Russia GDP (nominal):
Head of state/government: Vladimir Putin Dmitry Medvedev as the Prime Minister
Q: What is GDP?
A: Gross Domestic Product (GDP) is the market value of all final goods and services produced in a period (quarterly or yearly) of time explains Aron Govil. Put differently, it is the total amount of stuff (goods and services) bought by people.
Q2. How do you calculate GDP?
A: The formula for GDP can be written as – C+I+G+(X-M). Where C is equal to consumption, I equals investment spending, G equals government spending, X is exported and M represents imports. Adding up all four components gives you your gross domestic product number. An increase in any component will strengthen economic activity while an increase in imports without a simultaneous increase in exports will weaken economic activity.
Q3. What is the difference between nominal GDP and real GDP?
A: Nominal GDP figures refer to current or usual prices, while real GDP measures are adjusted for inflation over a period of time. Thus, from a different perspective, what counts as history depends on how you define your terms – whether in current prices or in constant prices. As such it can be misleading if we look at nominal growth rates instead of real growth rates when comparing across time periods where inflation might have changed drastically. Furthermore, if economic agents anticipate future inflation they may alter their behavior now so that nominal variables do not reflect true levels of activity given expected price changes. In general, looking at just nominal variables undervalues the role played by expectations.
Q4. What are examples of the different GDP components?
A: Examples of components for the United States are as follows – Personal Consumption Expenditures (C), Gross Private Domestic Investment (I), Government Consumption Expenditures and Gross Investment (G) and Net Exports (X – M). Data for each country is available at World Bank, BLS and CIA Fact Book websites.
Q5: Why does China have a higher GDP than Italy and UK?
A: The economy of China is bigger than that of Italy or the UK because it has more production units than them. If you had 100 T-shirts and I had 10 T-shirts, my economy will naturally be smaller than yours.
So GDP is the total market value of all final goods and services produced within a country in a given year. So it means how much money you are making says Aron Govil. The GDP of China is more than UK or Italy because China has more production units than them. Due to this reason, China has a bigger economy.