ECN 204 Study Guide - Comprehensive Final Exam Guide - Inflation, Xm Satellite Radio, United States Dollar
20 Nov 2018
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Total market value of all final goods and services produced within a country in one year. Final products/services have been purchased for final use and not for any form of resale to avoid double-counting. Financial products (stocks, bonds, etc) are not considered final goods/services. Allocates production based on ownership of resources. Production from a canadian-owned factory in china will be included in china"s gdp and. Only include final sales in calculating gdp. Gdp can be viewed as a measure of total income. Defined by gdp of a country divided by the population. Used as an indicator of standard of living when comparing countries. Gdp per capita tells us nothing about the distribution of income. It"s possible that gdp is increasing even if the vast majority of people"s incomes are lower. One person could be gaining all the benefit while the rest of the population is worse off.
