ECON 105 Chapter Notes - Chapter 20: Gross Domestic Product, Investment Goods, Northern Ireland Environment Agency

• School: Simon Fraser University
• Department: Economics
• Course: ECON 105
• Professor: Seong- Jun Choi

Document Summary

One firm"s output is often another firm"s input. Wheat (farmer) flour (milling company) bread (baker) Production occurs in stages: some firms produce outputs that are used as inputs by other firms, and these firms, in turn, produce outputs that are used as inputs by yet other firms. Double counting: adding every value (bread + flour + wheat) used in production. Value added is the correct measure of each firm"s contribution to total output the amount of. Firm"s value added = net value of output. The sum of all values added in an economy is a measure of the economy"s total output market value that is produced by that firm: what is used to calculate gdp. Measures of national income and notional product come from an accounting system national income and expenditure accounts (niea) produced by. Statistics canada: have a logical structure based on the flow of income.