ECON102 Chapter Notes - Chapter 20: Gross Domestic Product, Gross Profit, Intermediate Good

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champagnegnat240

28 Sep 2016

School

University of Waterloo

Department

Economics

Course

ECON102

Professor

Wentang Kuo

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ECON102 Full Course Notes

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Gross domestic product (gdp) the market value of all final goods/services produced in a country in a given time period. Final goods & services: gdp is the value of the final goods/services produced. Whether a good is a consumer good or an intermediate good depends upon how it"s used. It"s an intermediate good if it is used to produce a good for sale or to provide a service. Refrigerator and milk used by ice cream shop owner. It isn"t an intermediate good if it is purchased for personal consumption: financial assets (stocks/bonds) and secondhand goods (used cars or existing homes) are not part of gdp. Produced within a country: gdp only measures production within a country domestic production. Gdp & the circular flow of expenditure and income. A 4th factor of production, entrepreneurship, receives profit: aggregate income = aggregate expenditure total income received by households, including retained earnings. The purchase of ppe and additions to inventory is investment.

Related Questions

Gross domestic product is calculated by summing up

A) the total quantity of goods and services in the economy.

B) the total quantity of goods and services produced in the economy during a period of time

C) the total market value of goods and services in the economy.

D) the total market value of final goods and services produced in the economy during a period of time

grayhornet187

Gross domestic product is officially measured by adding together the:

a. quantity of each good and service produced by US residents

b. market value of all final goods and services produced within a nation's borders.

c. quantity of all goods and services produced by US-owned citizens.

d. None of the above answers are correct

sapphirehare17

An improvement in technology causes the production possibilities frontier (PPF) to

	shift to the right.
	pivot upward.
	shift to the left.
	pivot downward.

(7)

Which of the following is not shown by the circular flow model?

	The flow of resources in one direction and money in the other
	The equality of aggregate spending and aggregate income
	The interaction of households, firms, and the government
	The total amount of goods and services the economy can produce

(8)

Gross domestic product (GDP) is defined as

	the market value of all final goods and services produced in an economy in a given period of time.
	the market value of all consumption goods and services produced in an economy in a given period of time.
	the market value of all investment goods and services produced in an economy in a given period of time.
	the real value of all investment goods and services produced in an economy in a given period of time.

(9)

Real GDP

	includes all domestic and foreign transactions.
	includes the dollar value of domestic transactions only.
	tries to isolate the effect of changing output, holding prices constant.
	measures GDP in terms of prices of goods and services produced.

(10)

When economists talk about economic growth, they are usually referring to

	the percentage change in nominal GDP.
	the percentage change in real GDP.
	the percentage change in nominal investment.
	the percentage change in real investment.

chocolateant769

ECON102 Chapter Notes - Chapter 20: Gross Domestic Product, Gross Profit, Intermediate Good

ECON102 Full Course Notes

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