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32 Cards in this Set
- Front
- Back
Personal Income |
earned and unearned income, available to resource suppliers, before payments of personal income taxes |
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Net domestic income at factor |
all income earned by canadian- supplied factor of production (wages, interest, rent, profit) |
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Disposable income |
personal income, less personal taxes |
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Nominal GDP vs. Real GDP |
Nominal - adjuted for inflation Real - nonadjusted for inflation ( measures price level at time of measurement) |
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Chain weighted index |
links each year to previou year, by getting previous year prices, and current year prices |
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Different kinds of measurements of shorcomings of GDP |
improved quality, non- market transactions, and underground economy |
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National income accoutning |
measures economys overall performances |
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gross domestic product |
monetary meaure measures economys performance total market value of all goods and services in the annual boundries of canada |
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How to Avoid Multiple Counting |
only add up final goods and services |
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Final Goods and Services |
goods and services purchased just for final use, and not for resale |
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Intermediate Goods and Service |
goods and service purcahsed to be re-sold or further manufacturing |
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Types of non- production transaction |
second hand sales finanacial transactions |
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Different kinds of financial transactions |
public transfer paument private transfer payment stock market transaction |
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Expenditures Apprach |
adds up all expenditures made for final goods or services |
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What to addup in Expenditures App. |
personal consumtion expenditures (C) gross investment (Ig) government pruchase (G) Net Income (Xn) = export (X) - import (M)
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Income Approach |
adds up expenditures, that are distributed as income, to those producing output |
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Examples of Income Approach |
Wages and salaries Profit of corporations and governement before taxes Interest and Investment income Net profit of farms and unicorporated businesses Indirect taxes Depreciation |
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Economic Growth defined as |
increase in real GDP over time or increase in real GDP/ capita (per population) over time |
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Examples of growth as a goal |
1- lessons burden of small supply 2- economic goal |
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Examples of Growth of Canada |
1- added leisure 2- imporved product and service 3- other impacts |
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Modern Economic Growth |
recently nations have experienced sustained increase in real GDP per captia |
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What has economic growth effected? |
cultural growth, political, and socially |
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How has economic growth effected cultures? |
people have time for leisure activities and the arts |
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How has economic growth effected social factors? |
- universal public education - got rid of legal resrictions, and social norms against women and minorities |
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How has economic growth effected political stand points? |
countries have moved toward democracy |
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Uneven Distribution of Economic Growth |
- spread from British birthplace - advanced to France, Germany, and Other places in Europe in 1800s - thank after hit Canada, US, and Austrilia - Didn't hit Japan until 1870 - Than rest of Asia until 1900 - Than central and south america, and middle east started to receive economic growth - Africa didnt receive anything until 20 yrs ago - Some places still havent received anything |
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Instituational Structure that Promote Growth |
Strong property rights Patent and copyright Efficient financial institutions Literature and education Free trade Competitve market system |
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Different determinites of growth |
supply factor, demand factor, and efficiency factor |
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Supply factors growth points |
1- increase of quanitity/ quality of human res. 2- increase of qnantity/ quality of natural res. 3- increase in capital goods 4- improvements of technology |
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Demands factors growth point |
increase in demand of the economy's growth, made by the increase of the podution potential by economy |
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Labour Productivity |
- average product of labour - output per worker/ hour |
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Labour force participation rate |
percentage of working age population still in the labour force |