Class Notes (834,400)
Canada (508,508)
Economics (490)
ECON 105 (187)
Lecture 6

Econ 105 Lecture 6 Jan 24th.doc

3 Pages
111 Views
Unlock Document

Department
Economics
Course
ECON 105
Professor
Brian Krauth
Semester
Winter

Description
Econ 105 Lecture 6 Jan 24th Chapter 5: Measuring an nation's income -GPD(Gross Domestic Product) = is the market value of all final goods and services produced within a country in a given period of time -Market value : we produce a variety of goods. Need a consistent unit. Remember from supply and demand: -(1) The price is the opportunity cost. -(2) The price is at least as high as the value of the good to its purchaser. -Final: not used to produce other goods (at least not immediately). Rules out intermediate goods. -e.g. tires sold to Ford and put on a truck to sell (intermediate) -e.g. tires sold to a Ford owner to put on her truck (final) -This is done to avoid double counting -Produced within a country = within the countries border - Domestic = within its borders - National (gross national product) = produced by the owners from a country (can be produced within a different countries borders) -Given a period of time -Stocks vs. flows -Capital = stock -Investment = flow -Circular Flow diagram: -total production = total expenditures = total income -GPD can be calculated by any of the 3 ways listed above, all 3 numbers should be equivalent -Some related quantities: -GNP (Gross national product) = market value of all final goods and services produced using factors of production owned by a country's nationals = (GDP) + (net factor payments from abroad). -Net national product = (GNP) - (depreciation on capital) -National income -Personal income -Personal disposable income -Limitations of GDP (note: the limitations depend on what we are using it for) -Seemingly important, but not really in practice: -Distinctions between GDP, GNP, NNP, etc. Not much difference in practice, and there is often a trade-off between: -theoretically preferabl
More Less

Related notes for ECON 105

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit