Econ 1010 chapter 1 questions
1. GDp is a measure of a country’s production through measuring the quantity and
net worth of products. Final goods are goods that are sold as a final finished
product. Intermediate goods are complements in production.
2. GDP equals to aggregated income and expenditure because both values must
rise together to achieve a balance in spending and earnings.
3. Gross is before subtraction of deprecation while net is after the subtraction has
4. The expenditure approach to GDP is the measurement of all outgoing expenses.
This is an accurate measure in the sense that the spending equals the income.
5. The income approach measures the gains in the factors of production. This some
times may result in differences with the expenditure as people may not record all
their informal earnings.
6. We add the indirect taxes and subtract the subsides. Which bri