ECON 1010 Midterm: Midterm Note
Document Summary
Gross domestic product (gdp)- market value (total value in dollars) of all goods/services produced in country. Market value- apples sh. 10/apple, 50 apples = ; oranges sh. 20/orange, 100 oranges = (mkt value ) Final good- item bought by its final user (ford truck) Intermediate good- item produced, bought by another firm, and used as final good: must exclude from gdp avoid double counting (car tires) Gdp measures: value of production, which equals total expenditure on final goods and total income. Factors of production- labour, capital (machines), land, entrepreneurship. Factor market- households sell labour and firms buy the services. Goods market- firms sell and households buy consumer goods/services. Firms buy and sell new capital (equipment) or investment (buildings) Government expenditure- buy goods/services from firms and expenditure on goods/services. Expenditure w/ taxes and pay financial transfers to households. Exports- firms in canada sell goods/services to the world | imports- buy goods/services from all the world.
