Gross domestic product: concepts, measurement, and applications

Gross Domestic Products

What does a nation's Gross Domestic Products have in common with the Olympics? The Gross Domestic Product (or GDP) is a measuring tool used not only to measure a nation's wealth but also to determine the number of Olympic medals won by that nation. The GDP is the amount of available resources that a nation can pour into training their gifted athletes. Just being a host nation, for the Olympics, usually increases the medals won, as well as the encouragement that comes from an athlete performing on home turf.

In the case study "Who Wins at the Olympics?" The measurement of success, which is the number of medals that come home, is a direct reflection of that nation's Gross Domestic Products. A large population increases the GDP except in poor nations such as India, Indonesia, China, and Bangladesh. Therefore, to measure the ability of a nation to produce a number of Olympic winners one need only look at its current Gross Domestic Product. Taking into consideration that even if a nation is economically poor or not, the actual GDP will dictate the number of Olympic medals to be won. Add to that whether the nation is the host country for the Olympics and if they have invested more of their resources into training their gifted athletes to help determine the number of medals won.

Policymakers should take careful note of their nation's Gross Domestic Products. As an example, if the nation is doing poorly they can help ensure that policies be put in place that will encourage growth and investment into training talented athletes. Even if the nation is doing well, it would still be a sound idea for policymakers to see that investments are poured into their star athletes to ensure an increase in GDP when their country is represented in the next Olympics. Policymakers would be well advised not to quench their nation's ability to produce better goods and services, including top notch athletes.