ECON 112 Lecture Notes - Lecture 1: Economic Freedom, Washington Consensus, Tax Incidence
Document Summary
Gnp (gross national product): value of all finished goods and services produced by a society during a given year (includes that produced by citizens outside the country) Gdp (gross domestic product): value of all finished goods and services produced within a country during a given year. Per capita income: gdp or gnp divided by population. Lots of informal or extralegal income (drug dealing, prostitution=extralegal, lemonade stand, yard sales, stay-at-home moms doing laundry, cleaning, etc = informal) I(cid:374)(cid:272)o(cid:373)e dist(cid:396)i(cid:271)utio(cid:374) (cid:894)does(cid:374)(cid:859)t sa(cid:455) ho(cid:449) (cid:373)a(cid:374)(cid:455) people make that per capita income of 53k/year) Price differences (not adjusted for different prices in different countries, need to use ppp) Environmental factors (we can build a lot more stuff at a faster pace had it not been for environmental factors, air pollution, global warming. Developing countries would rather work in toxic environments than not feed their families. ) Gdp is more tangible with the exception of services.
