1. The Economy can be Counted Citizenship: Introduction to Economics

2. About the Unit In the Introduction to Economics Unit we will be exploring the following questions: Why do we have private property? Why do we have money (currency)? What is inflation? How does money and goods flow between producers and consumers? Why are some goods/services more expensive than others? How the economy can be measured?

3. The Economy can be Counted

4. Historical Examples 1620 - English Scientist Francis Bacon argues for a new scientific approach based on the collection of facts. 1623-87 - English Scientist William Petty applies new fact based scientific approach to economic and political affairs. 1693 - English statistician Gregory King writes “Great Statistical Survey of England’s Population.” 1930’s - Australian Economist Colin Clark invents idea of Gross National Product (GNP), which is the value of all products and services produced over an entire year based on location of ownership. 1934 - Russian-US Economist Simon Kuznets develops modern national accounting methods, including Gross Domestic Product (GDP). GDP is the value of all the products and services produced over an entire year based location of production.

5. Videos https://www.youtube.com/watch?v=1Il5I QHcYP8 https://www.youtube.com/watch?v=1Il5I QHcYP8

6. Summary The total expenditures of a given population can be subtracted from the total income of the population to find the total value of labor, which is a way to measure the economy. The most common way in which the economy is counted are GNP, which refers to the total value of goods/services based on location of ownership and GDP which refers to the total value of goods/services based on the location of production.