11 286 309 emc chap 11 111705 605 pm page 293 focus

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: overnment were to include housework. How might it go about placing a dollar value on housework? 11 (286-309) EMC Chap 11 11/17/05 6:05 PM Page 293 Focus Questions Measuring GDP What are the four sectors of the economy? What are consumption, investment, government purchases, export spending, and import spending? How is GDP measured? What is per capita GDP? Key Terms consumption investment government purchases export spending import spending How Is GDP Measured? The GDP of the United States today is more than $12 trillion. How did economists come up with this figure? What exactly did they do to get this dollar amount? First, economists break the economy into four sectors: the household sector, the business sector, the government sector, and the foreign sector. Next, they state a simple fact: the people in each of these sectors buy goods and services—that is, they make expenditures. Economists give names to the expenditures made by each of the four sectors. The expenditures made by the household sector (or by consumers) are called consumption. The expenditures made by the business sector are called in...
View Full Document

This document was uploaded on 01/16/2014.

Ask a homework question - tutors are online