In 1991, why did the Dept. of Commerce”s Bureau of Economic Analysis (BEA) switch from measuring GNP to measuring GDP? In your answer, cite some examples of differences between GNP and GDP. (hint: income from foreign investments, foreign-owned business, etc.)

News Assignment 1: GDP

GNP vs. GDP

GDP is the market value of everything produced within a country; GNP is the value of whats produced by a country’s residents, no matter where they live.

1. In 1991, why did the Dept. of Commerce”s Bureau of Economic Analysis (BEA) switch from measuring GNP to measuring GDP? In your answer, cite some examples of differences between GNP and GDP. (hint: income from foreign investments, foreign-owned business, etc.)

2. Consider two countries: Kalindor and Azeroth. Kalindor”s citizens invest very little outside Kalindor, while Azeroth”s citizens invest almost all of their discretionary income outside of Azeroth. For each hypothetical country, explain the difference in measuring income using GDP vs. using GNP. Which makes more sense to you?

China”s GDP
China”s GDP grew almost 7% during 2015, but that growth rate was its slowest in 25 years.

3. Search for an article about the Chinese economy in the past few decades, one that explains why has their economy had such high GDP growth. Summarize the article.

4. If the article in #3 above does not contain forecasts for China”s economy, search for another article about forecasts for the the Chinese economy in the coming years. Summarize the article and explain whether you agree with the author””s conclusions.

5. In its “transition period”, explain whether you think China has been practicing free-market capitalism. Identify some of the differences between capitalism as it is practiced in China and in the U.S./Western Europe.

U.S. GDP

“It”s the economy, stupid” was widely used during Bill Clinton”s successful 1992 presidential campaign against George H. W. Bush.

6. Search for an article forecasting the U.S. economy for the 2016. Are the authors Conservative, Liberal, or Radical? Cite specific phrases or lines from the article to support your answer.

7. How did economic conditions effected U.S. voters in 2012? How will economic conditions affect U.S.voters in 2016?

8. Find an article about how the the October, 2013, government shutdown affected the U.S. economy. (Turn in the URL or a copy of the article) Many blamed Ted Cruz & Tea Party Republicans for the shutdown. Do you? Explain the consequences, & whether you believe these are short-term or long-term.

GDP/Capita vs. Happiness

9. Explain whether you think a country”s GDP/Capita determines Happiness. Is there a strong or a weak correlation?

10. How would you think Conservatives or Liberals or Radicals correlate wealth with Happiness? Explain.