ECON 2030 Lecture Notes - Lecture 10: Dry Cleaning, Gross Domestic Product
1 Mar 2018
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Document Summary
Econ-2030 lecture 10 notes- chapter 23: measuring a nation"s income. Microeconomics- study of how households and firms make decisions and interact in the market. Includes inflation, unemployment and economic growth (tells us how well an economy is doing) Measures total income of everyone in the economy. Also measures total expenditure on the economy"s output of goods and services. Gdp focuses on the economy as a whole. Every dollar a buyer spends is a dollar of income for the seller. Illustrates gdp as spending, revenue, factor payments, and income. Factors of production are inputs like labor, land, capital, and natural resources. Factor payments are the payments to the factors of production e. g. : wages, rent, etc. Own the factors of production and sell/rent them to firms for income. Buy/hire factors of production and use them to produce goods and services. Matches savers" supply of funds with borrowers" demand for funds.
