Economics 1022A/B Final: Econ 1022 Exam Notes Part 1
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ECON 1022A/B Full Course Notes
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Gross domestic product is the market value of the final goods and services produced within a country at a given period of time: market value. Gdp values items at their market value - the price at which the items are traded in markets: final goods and services. A final good is an item that is bought by its final user during a specified period of time. An intermediate good is an item that is produced by one firm, bought by another firm, and used as a component of a final good or service. If we were to add the value of intermediate goods produced to the value of final goods, we would be counting the same thing many times - known as double counting. Some items that people buy are neither final nor intermediate goods and are not part of gdp - ex. Financial assets (stocks and bonds) and second hand goods (used cars and homes: produced within a country.