ECO102H1 Chapter Notes - Chapter 20: Black Market, Gdp Deflator, Retained Earnings

10 views6 pages
School
Department
Course
cudapuca and 38677 others unlocked
ECO102H1 Full Course Notes
45
ECO102H1 Full Course Notes
Verified Note
45 documents

Document Summary

Obtaining national output is not simple because firm"s output is another firm"s input. Production happens in stages: firms produce output outputs used as inputs by other fimrs, these firms produce outputs that are used as inputs by other firms. Error that happens in estimating nation"s output by adding all sales of firms is double counting. If we add up values of all sales, same output would be counted everytime that it was sold by one firm to another. Intermediate goods: output of firms used as input by other firms. Final goods: products not used as input by other firms, not in the period of time under consideration. If sale of goods can be categorized between these two, measuring output would simple = the value of all final goods made by firms. Value added: used to avoid double counting is the amount of value firm & workers add to their products over & above costs of intermediate goods.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related textbook solutions

Related Documents

Related Questions