{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ 104 National banks

Econ 104 National banks - Topic IV National Accounts Topic...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Topic IV National Accounts Topic IV. National accounts GDP: The market value for all final goods and services produced within one country in a given period of time. Recall: Increases in GDP do not necessarily mean a country is better off. 1. Underground economy: Definition: A market consisting of all commerce on which applicagle taxes and/or regulations of trade are avoided. a. Highest impact is in countries during war times Rations make the black market flourish. High impact in countries with a lot of government corruption. - Illegal drugs - Prostitution - Babysitting - Lemonad e st ands - Illegal firear ms (weaponry) - Ga m bling - Copyright ed m at erial (ipod) - Any job working und er the table - Comput er h ackers (software theft) - Illegal internet s ales: credit card and bank account nu m b ers b. 4 m ain underground econo my cat egories 1. Activities yielding incom e not reported to tax a uthorities o High tax rates encourag e workers to work “off the books” o Sale and distribution of illegal goods and services 2. Production which violates one or sever al m a nd at es - Inspection & label laws
Image of page 1

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

View Full Document Right Arrow Icon
Topic IV  National Accounts - Labor laws - Regulations on agriculture 3. Productive activity by individuals receiving transfer payments. - Social security benefits - Welfare payments 4. Productive activity by illegal aliens - Many pay income & other taxes - IRS does not compare records with immigration offices. - U.S.  encourages illegal immigrants to use the national banking system ** Banks benefit ** Helps U.S. to uncover “real” criminal activity c. Cost of the underground economy 3 ways to measure underground economic activity 1. Changes in the labor force participation rate. - One thing that has not changed….  The Labor Force Participation (LFP) of males aged   and over.   - In 1970 adult male LFP =  83% - In 2006 Adult male LFP =  75% Problems with measure: o Changes in working structure o More women working ( changes in family structure) o Changes in the retirement pattern 2. Change in the level of liquidity How much people hold in case rather then in checking accts, saving accts, etc.
Image of page 2
Image of page 3
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