Submitted by amradoofamash t3_127j1cy in explainlikeimfive
RhynoD t1_jef4idw wrote
Reply to comment by phiwong in ELI5: what is the GDP of a country by amradoofamash
To add some clarity:
Gross - total amount before factoring losses or costs. If you own a store selling widgets and you sell $5000 worth of widgets one day, that's your gross sales. But, you have to pay your employees, pay your electric bill, and order more widgets to sell. All that costs, oh, $4000 for that day. Thus, you get net sales of $1000 ($5000-$4000).
Domestic - having to do only with your own country. So, like, Amazon does a lot of business overseas and that counts towards their gross sales, but that money isn't coming into the USA so it isn't part of the USA gross product.
Product - generic term for all of the value of everything made or sold.
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