Log in
HomeClass Notes1,200,000US530,000

ECON 20B Lecture Notes - Lecture 1: Gdp Deflator, Gross Domestic Product

75 views2 pages
fuchsiabadger114
18 Jan 2017
School
UC-Irvine
Department
Economics
Course
ECON 20B
Professor
George Sarraf

For unlimited access to Class Notes, a Class+ subscription is required.

nicholascsci and 34 others unlocked
ECON 20B Full Course Notes
54
ECON 20B Full Course Notes
Verified Note
54 documents

Document Summary

Study of how households and firms: make decisions, interact in markets, macroeconomics. Study of economy-wide phenomena: including inflation, unemployment, and economic growth, gross domestic product (gdp) Measures the total income of everyone in the economy. Measures the total expenditure on the economy"s output of goods and services: for an economy as a whole. Income must equal expenditure: circular-flow diagram assumptions: Markets: goods and services, factors of production. Households: spend all of their income, buy all goods and services. Firms: pay wages, rent, profit to resource owners, gross domestic product (gdp) Market value of all final goods and services. In a given period of time: gdp is the market value . Growth average 3% per year since 1965. Growth is not steady: gdp growth interrupted by recessions, gdp the best single measure of the economic well-being of a society . Larger gdp: good life, better healthcare, better educational systems.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

ECON 20B Chapter Notes -Hallmark Cards, Final Good, Seasonal Adjustment
salmonspider365
ECON 20B Lecture 1: 1.1 (01/12)
byzantiumtiger653
ECON 20B Lecture Notes - Lecture 5: Black Market, Intermediate Good, Root Mean Square
ochreeel210

Related Questions

Which of the following statements about GDP is correct

A) Money continuously flows from households to firms and then back to households, and GDP measures this flow of money

B) GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services.

C) While not perfect, GDP is generally regarded as the best single measure of a society’s economic well-being.

D) All of the above are correct.

6)
 
An improvement in technology causes the production possibilities frontier (PPF) to
 
  shift to the right.
  pivot upward.
  shift to the left.
  pivot downward.

 

 

 
(7)
 
Which of the following is not shown by the circular flow model?
 
  The flow of resources in one direction and money in the other
  The equality of aggregate spending and aggregate income
  The interaction of households, firms, and the government
  The total amount of goods and services the economy can produce

 

 

 
(8)
 
Gross domestic product (GDP) is defined as
 
  the market value of all final goods and services produced in an economy in a given period of time.
  the market value of all consumption goods and services produced in an economy in a given period of time.
  the market value of all investment goods and services produced in an economy in a given period of time.
  the real value of all investment goods and services produced in an economy in a given period of time.

 

 

 
(9)
 
Real GDP
 
  includes all domestic and foreign transactions.
  includes the dollar value of domestic transactions only.
  tries to isolate the effect of changing output, holding prices constant.
  measures GDP in terms of prices of goods and services produced.

 

 

 
(10)
 
When economists talk about economic growth, they are usually referring to
 
  the percentage change in nominal GDP.
  the percentage change in real GDP.
  the percentage change in nominal investment.
  the percentage change in real investment.

j

What is the market for factors of production?

  1. What is the market for factors of production?

    1. The market for factors of production is where households and firms interact to trade factors of production for factor payments. For example this is where people provide firms with labor and firms pay them with wages. 

  2. What is the money market?

    1. The money market is where households, firms, and the government may save and/or invest their money to earn interests. Money market includes banks, stock market, bonds market, and other financial institutions where economic actors can buy and sell financial assets to earn interests and/or dividends.

  3. Who are the three economic actors in the circular flow model?

    1. In a circular flow model, the three main economic actors are the households, firms, and the government. Households include the typical individual consumers. Firms include businesses and similar producers in the economy. Finally, the government refers to the whole government system from federal to local level.

  4. How is the national income of an economy determined?

    1. The national income of an economy is determined by measuring the total value of the output produced in an economy or the total income earned by the actors in the economy. In a circular flow model, we can see that the value of total output produced should equal the total value of income generated and earned in the economy. This is because every dollar spent by someone in the economy is received by another person in the economy as income.

  5. What is GDP?

    1. The gross domestic product or GDP represents the sum total of the value of the final goods and services produced within the economy for a given year. It is the most commonly used measure of its economy’s productivity and income.