ECN 204 Lecture Notes - Lecture 4: Black Market, Workforce Productivity
21 Feb 2018
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Document Summary
Gdp: excludes all intermediate goods, second-hand goods, non-production transactions and transfer payments: expenditure based (gdp= add all 4) Gross national product: total income that residents of a country earn within a time period, measures output by canadians here and abroad, but excludes the contribution to. Canadian from investments of non-residents: gnp= gdp + net foreign income of residents, gnp= gdp net investments from non-residents. Net flows = inflows outflows: measures the size of an economy (bigger the gdp, bigger the size of the economy, determine whether the economy is relatively big or small. And the other has a big pop. with same gdp: gdp per capita = gdp/ population, gdp per capita is a better indicator of the living standard. Chain weighted index: fixed based price index. Failures of gdp: non market transactions do it yourself jobs, underground economy, leisure, wellbeing, environment, composition and distribution of output, non material sources of well being, product quality.
