ECON 20B Chapter Notes -Hallmark Cards, Final Good, Seasonal Adjustment
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ECON 20B Full Course Notes
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Microeconomics: study how households and firms make decisions and how they interact in markets: economy"s income & expenditure. Gdp: market value of all final goods & services produced within a county in given period of time: measures total income of everyone in the economy and total expenditure on output of goods & services. As whole, income must equal expenditure: buyer is always same as seller, circular flow diagram shows the transactions, measurement of gross domestic product. Adds dif, products into single measure of value of econ. Activity: market prices reflect value of goods. Gdp excludes items produced/sold illegally (drugs) or produced/consume at home. Intermediate good: middle process: paper made for hallmark card, double counting value. Gdp only includes value of final goods. If int. good added to inventory for later use, then can be counted in final good. Gdp is for already produced, not used stuff (car) Gdp measures for specific interval of time.