Economics 1022A/B Chapter Notes - Chapter 20: Direct Tax, Income Approach, Indirect Tax
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ECON 1022A/B Full Course Notes
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Gdp the total dollar value of all goods and services produced in a country in a year. Gross means before subtracting the depreciation of capital. Net means after subtracting the depreciation of capital. Net investment the amount by which the value of capital increases (cid:1872) (cid:1866)(cid:1874)(cid:1871)(cid:1872)(cid:1865)(cid:1866)(cid:1872)(cid:1871)=(cid:1870)(cid:1867)(cid:1871)(cid:1871) (cid:1866)(cid:1874)(cid:1871)(cid:1872)(cid:1865)(cid:1866)(cid:1872)(cid:1871) (cid:1868)(cid:1870)(cid:1855)(cid:1853)(cid:1872)(cid:1867)(cid:1866) The prices at which items are traded in the market: final goods and services. Final good an item that is bought by its final user during a specific time period (for example, a new ford truck) 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 (for example, ford buys tires from another company for their trucks) Therefore only the final goods are included in the gdp or else you would be double counting counting the same good twice (for example, counting the tire bought by ford and counting the final ford truck)