ECO 200 Chapter Notes - Chapter 7: Ice Cream, Raw Milk, Disposable And Discretionary Income
Document Summary
Total market value of final goods and services produced in a given country in a specified time period. Gdp= c + i + g+ (x- im) Included b/c represents something that was produced but not sold. Gdp includes everything produced, not only sold. Gdp= w + r + i + profit. Govt. corrects for (some of) this by: Govt. estimates how much your family would have to pay if they hypothetically rented the house. When you buy a used car, its not included in gdp since it was accounted for when it was purchased new. Criticism of real gdp per capita as measure of well- being. Home cooked food, food not bought from stores or restaurants. Doesn"t account for undesirable byproducts of producing gdp. One with clean water and clean air lots of health. Other place has dirty water and polluted air people lack health. Doesn"t reflect distribution of income of wealth. Producing and selling drugs in the u. s.
