Economics 1022A/B Lecture Notes - Lecture 15: Income Approach, Fop, Final Good
maroonwoodchuck8495771 and 39243 others unlocked
27
ECON 1022A/B Full Course Notes
Verified Note
27 documents
Document Summary
Gdp= market value of all final goods/services produced in a country in a given time period. Goods and services valued at their market prices. Final good= item bought by its final user during a specific time period. Value excluded from gdp to avoid double counting. Production within a country only (domestic production), not foreign. Specific time period, normally a year or quarter. Opposite of gross (before deductions) is net (after deductions). Gdp measures market value of production, thus it equals total expenditure on final goods and total income. Gdp is related to standard of living, for it measures aggregate income. Households sell and firms buy labor, capital and land in factor markets (intermediate markets where things are bought and sold to produce). For these factors, firms pay income to households (wages, interest, rent profit). Firms sell and households buy consumer goods/services in goods market. Consumption expenditure: total payment for consumer goods and services (c)