ECO209Y1 Lecture Notes - Final Good, National Accounts, Durable Good
Document Summary
Slide 3: production: value added; contribution, production/service sector, expenditure: purchases of finite goods. Slide 4: labour, capital, land, factors of production are always owned by individuals. In absence of gov"t, all approaches gives the same result: closed economy. Slide 5: current output, value of the car (excluded) + service(commission) provided by the dealer, market price + indirect taxes (sales, excise tax and subsidies, ticket effect, goods exchanged in the market, home production is not counted, exceptions: Ex: columbia: estimate by the national accounts, the amount then can be added to gdp. Or: money laundering: source is unclear, cheese: overestimation, renting vs. owning. Imputed rent to owners" occupied houses: 1. Two identical economies: more renters vs more owners, the economy with more renters would appear to be bigger, 2. Meaningful comparison between two economies or different. Increase in value of a painting: capital gains: not a result of production process, no economic activity.
