Month: January 2025

Circular Flow Diagram: A circular flow diagram represents the flow of goods, services, and money in an economy. It illustrates the interactions between households, businesses, and the government, highlighting how economic activities are interconnected.

Three Domains Of Organisms: The three domains of organisms are Bacteria, Archaea, and Eukarya. This classification system, based on genetic and molecular differences, helps in understanding the evolutionary relationships and characteristics of all living organisms.

Here’s a brief history of the Global GDP.

The concept of Gross Domestic Product (GDP) was first developed by Simon Kuznets in 1934 for a U.S. Congress report . GDP is the sum of gross value added by all resident producers in the country plus any product taxes and minus any subsidies not included in the value of the products . It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources .

According to the World Bank and Maddison, GDP is gross domestic product converted to international dollars using purchasing power parity rates . An international dollar has the same purchasing power over GDP as the U.S. dollar has in the United States .

The following table shows the world GDP over the last two millennia :

| Year | World GDP (2017 international dollars) |
|———-|——————————————-|
| 1 | 1.2 billion |
| 1000 | 1.2 billion |
| 1500 | 1.4 billion |
| 1600 | 2.2 billion |
| 1700 | 2.7 billion |
| 1820 | 1.2 trillion |
| 1870 | 2.7 trillion |
| 1913 | 6.6 trillion |
| 1950 | 15.7 trillion |
| 1973 | 36.5 trillion |
| 1998 | 44.2 trillion |
| 2015 | 119.0 trillion |

As we can see, the world GDP has grown exponentially over the years. In 1 AD, the world GDP was 1.2 billion international dollars, which increased to 119.0 trillion international dollars in 2015 . The world GDP has grown by more than 100 times in the last 2000 years .