Economics 1022A/B Lecture Notes - Lecture 20: Final Good, Transfer Payment, Intermediate Good
maroonwoodchuck8495771 and 39243 others unlocked
27
ECON 1022A/B Full Course Notes
Verified Note
27 documents
Document Summary
Gdp: the market value of the final goods and services produced within a country in a. Market value: the prices at which items are traded in markets. Final goods and services: products that will be sold to ultimate user. Whether a food is an intermediate good or a final good depends on what it is used for, not what it is. Rising incomes and a rising value of production go together: increasing productivity. The total amount that buyers pay for the goods and services produced is aggregate expenditure. Depreciation: t(cid:28667)(cid:28664) (cid:28663)(cid:28664)(cid:28662)r(cid:28664)as(cid:28664) (cid:28668)n t(cid:28667)(cid:28664) valu(cid:28664) o(cid:28665) a (cid:28665)(cid:28668)rm"s (cid:28662)ap(cid:28668)tal t(cid:28667)(cid:28664) r(cid:28664)sults (cid:28665)rom w(cid:28664)ar an(cid:28663) t(cid:28664)ar and obsolescence, Gross investment: the total amount spent both buying new capital and replacing depreciated capital. Net investment: the amount by which the value of capital increases. Consumption expenditure: do not include the purchase of new homes. Government expenditure: does not include transfer payment. Purchase of assets that will be used to produce revenue.