Chapter 6 Terms - 7. Personal Income This is a persons...

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Jason Murray 10/06/2010 Economics 2301 David Peek Chapter 6 Terms 1. Gross Domestic Product (GDP) – The estimated value of all services rendered and goods manufactured within the borders of a country. 2. Final Good – This could also be called a “finished product” of sorts. It is a good that is ready for sale and consumption. 3. Intermediate Goods – These are the items, goods, or components that are used in the manufacture of a “Final Good”. 4. Gross National Product – This is the current market value of all products and services produced in one year’s time using the labor and resources of the people in that country alone. 5. Government Transfer Payments – This is a redistribution of funds back into the market system by the government (e.g. Social Security Payments, financial aid, government subsidies). 6. Net Exports – This is the measure of the dollar value of the exports and imports in a certain country during a given time frame.
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Unformatted text preview: 7. Personal Income This is a persons total earnings from labor, investments, etc. 8. Disposable Income This is an individuals personal income, minus taxation, etc. 9. Business Cycle If the Real GDP is experiencing major fluctuations (ups and downs), economists say that the economy is going through a business cycle. Question 1 This could be good or bad. If the GDP goes up, and we have a way to sell the extra goods produced, it is good. If the GDP goes up, and no-one is buying, then we have a surplus which is not good. Question 2 C and D Question 5 Used goods are omitted, because they have already been counted in the GDP once, and you dont double count your goods. Financial transactions are omitted because they dont represent new assets being produced. Government Transfer Payments are excluded because they are not being paid out in return for goods or services. ....
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This note was uploaded on 11/26/2010 for the course ECON 2301 taught by Professor Camp,r during the Fall '08 term at Trinity Valley Community College.

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