ECON 1000 Lecture Notes - Gross Profit, Retained Earnings, Final Good
10
ECON 1000 Full Course Notes
Verified Note
10 documents
Document Summary
Gdp: market value of the final goods and services produced within a country in a given time period. Market value: prices that items are traded in markets. Prices that items are traded in markets. Final good: an item that is bought by its final user during a specified time period. Intermediate good: an item that is produced by one firm, bought by another firm and used as a component of a final good or service. Double counting: value of intermediate goods and value of final goods counted for two times. A good is an intermediate good or a final good depends on what it is used for, not what it is. Sometimes things that people buy are neither, not part of gdp (ex. Second good: is part of gdp in the year it was produced but not part of gdp the next. Only goods and services produced within a country count as part of gdp.
