ECON 1BB3 Chapter 5: Chapter 5 Econ 1BB3.docx
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ECON 1BB3 Full Course Notes
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Other measures of income: gross national product (gnp, net national product (nnp) (cid:224) total income earned by a nation"s permanent residents (nationals) regardless of where they were located when the income was earned (cid:224) total income of a nation"s residents (gnp) minus losses from depreciation (cid:224) depreciation: the wear and tear on the economy"s stock of equipment and structures (cid:224) called the capital consumption allowance , national income, personal income (cid:224) total income earned by a nation"s residents in the production of goods & services (cid:224) differs from nnp because excludes indirect business taxes (sales tax) & includes business subsidies; also because of a statistical discrepancy that arises from problems in data collection (cid:224) income that households and noncorporate businesses receive (cid:224) excludes retained earnings (income that corporations have earned but have not paid out to their owners) (cid:224) subtracts corporate income taxes and contributions for social insurance (mostly employment.