Measuring Wealth

• Gross domestic product = Total value of products and services produced in a time period, for example, one year
• GDP per capita (per person) = National GDP divided by population
• Example: If national GDP = $1 million; Population = 1000 people. GDP per capita = $1000

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Macro or Micro?

• Macro (big, large scale). Macro-economics is national or global view, GDP and GDP per capita are macro-economic metrics
• Micro (small). Micro-economics is from perspective of individuals

Measuring Income Inequality

• Gini coefficient varies from 0 to 100
• Gini coefficient of 0, everyone has equal income
• Gini coefficient of 100, one person has all the income

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