Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
|
National Income accounting
|
The techniques used to measure the overall production of the economy and other related variables for the nation as a whole
|
|
|
Gross domestic product (GDP)
|
The total market value of all final goods and services produced annually within the boundaries of the U.S., wheather by U.S.- or foreign-supplied resources.
|
|
|
Intermediate goods
|
Products that are purchased for resale or further processing or manufacturing.
|
|
|
Final goods
|
Goods and services that have been purchased for final use and not for resale or further processing or manufacturing
|
|
|
Multiple counting
|
Wrongly including the value of intermediate goods in the gross domestic product; counting the same good or service more than once
|
|
|
Value added
|
The value of the product sold by a firm less the value of the products (materials) purchased and used by the firm to produce the product
|
|
|
Expenditures approach
|
The method that adds all expenditures made for final goods and services to measure the gross domestic product
|
|
|
Income approach
|
The method that adds all the income generated by the production of final goods and services to measure the gross domestic product
|
|
|
personal consumption expenditures
|
The expenditures of households for durable and nondurable consumer goods and services
|
|
|
gross private domestic investment
|
Expenditures for newly produced capital goods (such as machinery, equipment, tools, and buildings) and for additions to investories.
|
|
|
Net private domestic investment
|
Gross private domestic investment less consumption of fixed capital; the addition to the nation's stock of capital during a year.
|
|
|
Government purchases (G)
|
Expenditures by government for goods and services that government consumes in providing public goods and for public (or social) capital that has a long lifetime; the expenditures of all governments in the economy for those final goods and services
|
|
|
Net exports
|
Exports minus imports
|
|
|
taxes on production and imports
|
A national income accounting catagory that includes such taxes as sales, excise, business property taxes, and tariffs which firms treat as costs of producing product and pass on (in whole or in part) to buyers by charging a higher price.
|
|
|
national income
|
Total income earned by resource suppliers for their contributions to gross domestic product plus taxes on production and imports; the sum of wages and salaries, rent, interest, profit, proprietors' income, and such taxes
|
|
|
consumption of fixed capital
|
An estimate of the amount of capital worn out or used up (consumers are) in producing the gross domestic product; also called depreciation.
|
|
|
net domestic product (NDP)
|
Gross domestic product less the part of the year's output that is needed to replace the capital goods worn out in producing the output; the nation's total output available for consumption or additions to the capital stock.
|
|
|
personal income (PI)
|
The earned and unearned income available to resource suppliers and others before the payment of personal taxes.
|
|
|
disposable income (DI)
|
Personal income less personal taxes; income available for personal consumption expenditures and personal saving.
|
|
|
nominal GDP
|
The GDP measured in terms of the price level at the time of measurement (unadjusted for inflation).
|
|
|
Real GDP
|
Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year, the index expressed as a decimal.
|
|
|
Price Index
|
An index number that shows how the weighted-average price of a "market basket" of goods changes over time.
|
