ECON
Econ Ch.6 Study help

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

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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.
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