ECON282 Lecture Notes - Lecture 2: Disposable And Discretionary Income, Transfer Payment, Final Good
25 Jul 2016
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National income accounting how stats canada calculates gdp. We are only looking at the market value when calculating gdp. What someone is willing to pay for it. We are only looking at the final goods not the intermediate goods. Resales aren"t counted only newly produced goods are counted. For one year: product approach, expenditure approach. Things that we cannot value things like freedom of speech, strong institutions, healthcare, clean air, clean water, biodiversity, national parks, happiness (political unrest, bad governments, etc. ) These things are not captured in gdp. Difference when compared to other countries, we cannot attach a market value to it so its not part of the gdp. Some of the illegal activities can be captured through expenses. Things hidden from government to avoid taxes babysitting. Stay at home mom or dad affects gdp their work has value but its not bought and sold in a market.
