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Why GDP does not count the same contribution twice

A finished product may contain parts bought and sold along a production chain. Adding every sale together can count some contributions more than once, which is why final output and value added matter when measuring an economy.

4–5 min

Questions you could explore

  • How do final output and value added describe the same simplified production chain?
  • When can an item be intermediate in one use and final in another?

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Economics and money

Why can Ireland’s inflation rate differ from your shopping bill?

A national price index combines many purchases that no single household makes in exactly the same proportions. Ireland's Consumer Price Index uses spending weights, so changes in different prices contribute unequally to the overall figure.

4–5 min

Why can Ireland’s inflation rate differ from your shopping bill?

Economics and money4–5 minA national price index combines many purchases that no single household makes in exactly the same proportions. Ireland's Consumer Price Index uses spending weights, so changes in different prices contribute unequally to the overall figure.

Economics and money

What does a free afternoon still cost you?

An hour can be free of charges and still be scarce. Choosing one use means giving up the best available alternative, which is the opportunity cost even when no money changes hands.

3–5 min

What does a free afternoon still cost you?

Economics and money3–5 minAn hour can be free of charges and still be scarce. Choosing one use means giving up the best available alternative, which is the opportunity cost even when no money changes hands.

Economics and money

How can insurance spread financial risk across a group?

An uncertain large loss for one person can become part of a wider pool of risks. Insurance connects that pooling with a contract and a premium, while the contract still determines which losses are covered.

3–7 min

How can insurance spread financial risk across a group?

Economics and money3–7 minAn uncertain large loss for one person can become part of a wider pool of risks. Insurance connects that pooling with a contract and a premium, while the contract still determines which losses are covered.

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