ECON 1010 Chapter Notes - Chapter 20: Retained Earnings, Xm Satellite Radio, Factor Cost
25 Feb 2013
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Chapter 20 measuring gdp and economic growth. The market value of the final goods & services produced within a country in a given time period. Market value: market value is the price at which items are traded in the. Final goods and services: a final good/service is an item bought by its final user during a specified time period (ford truck). On the other hand, an intermediate good/service is an item produced by one firm, bought by another firm, and used as a component of a final good/service (tire used in truck). If the value of intermediate goods/services produced were added to the value of final goods/services, the same thing would be counted many times. This is known as double counting (value of truck includes value of tires). Items such as financial assets and second-hand goods are neither final nor intermediate goods, and are not part of the gdp.
