ECON105 Lecture Notes - Environmental Degradation, Gross National Income, Fixed Capital
Document Summary
These notes are designed to supplement the text for national income accounting (lectures 6 and 7). They allow you to fill in some of the gaps where the text lacks a bit of detail and we don"t cover this level of detail in class. From picking apples off a tree to designing and building space stations, all production requires some effort and inputs. These inputs or ingredients" are classified according to general groupings known as the factors of production, which are: This category includes land, along with all natural resources like the sea, animals, wind and other elements. Goods which assist in the production of other goods and services. Examples of capital items are tractors, factories, computers, buildings and high tech industrial robots. Human nous and skill at organising and managing the other factors of production. The most widely used and conventional measure of a country"s economic size or national output is gross domestic product (gdp).
