- published: 09 May 2015
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A city is a relatively large and permanent settlement. Although there is no agreement on how a city is distinguished from a town within general English language meanings, many cities have a particular administrative, legal, or historical status based on local law.
For example, in the U.S. state of Massachusetts an article of incorporation approved by the local state legislature distinguishes a city government from a town. In the United Kingdom and parts of the Commonwealth of Nations, a city is traditionally a settlement with a royal charter. Historically, in Europe, a city was understood to be an urban settlement with a cathedral.
Cities generally have complex systems for sanitation, utilities, land usage, housing, and transportation. The concentration of development greatly facilitates interaction between people and businesses, benefiting both parties in the process. A big city or metropolis usually has associated suburbs and exurbs. Such cities are usually associated with metropolitan areas and urban areas, creating numerous business commuters traveling to urban centers for employment. Once a city expands far enough to reach another city, this region can be deemed a conurbation or megalopolis.
Gross domestic product (GDP) refers to the market value of all officially recognized final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living; GDP per capita is not a measure of personal income. See Standard of living and GDP. Under economic theory, GDP per capita exactly equals the gross domestic income (GDI) per capita. See Gross domestic income.
It is not to be confused with Gross National Product (GNP) which allocates production based on ownership. Gross domestic product is related to national accounts, a subject in macroeconomics.
GDP was first developed by Simon Kuznets for a US Congress report in 1934, who immediately said not to use it as a measure for welfare (see below under limitations). After the Bretton Woods conference in 1944, GDP became the main tool for measuring the country's economy.
G.D.P can be determined in three ways, all of which should, in principle, give the same result. They are the product (or output) approach, the income approach, and the expenditure approach.