Econ Ch.6 Study help

Econ Ch.6 Study help - Chapter Six National Income and...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Chapter Six: National Income and Product Accounts: Data collected and published by the government describing the various components of national income and output in the economy. Gross Domestic Product (GDP): The key concept in the national income and product account. - Total market value of a country’s output. Market value of all final goods and services produced within a given period of time by factors of production located within a country. - Counted in current dollars* (The current price that one pays for goods and services) Final goods and services- Goods and services produced for final use. Intermediate Goods- Goods that are produced by one firm for use in further processing by another firm. - Not counted in GDP - When nothing new is being produced, it is not counted in GDP - Ex: Leisure time, illegal goods/services, Intermediate g/s, Purchase of financial assets, purchase of a house in 08’ (built in 2000) Value Added: The difference b/w the value of goods as they leave a stage of production and the cost of the goods as they entered that stage. - In calculating GDP, we can either sum up the value added at each stage of production or we can take the value of final sales. We do not use the value of total sales in an economy to measure how much output has been produced.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern