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In Europe, Real GDP Is Substantially Higher Today Than It

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In Europe, real GDP is substantially higher today than it was 60 years ago. What does this tell us, and what does it not tell us, about the well-being of Europeans?


Definitions:

Welfare Economics

A branch of economics that focuses on the optimal allocation of resources and goods and aims to evaluate social welfare.

Equilibrium Price

The cost point where the amount of a product or service sought by consumers matches the amount available from producers.

Willingness to Pay

The maximum amount a consumer is prepared to spend for a good or service.

Baseball Game Ticket

A document or electronic card that grants the bearer entry to a baseball game.

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