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32 Cards in this Set
- Front
- Back
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Measures the economy's overall performance
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National income accounting
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Products that are purchased for resale or further processing or manufacturing.
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Intermediate goods.
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Products that are purchased by their end users
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Final goods
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The market value of a firm's output less the value of the inputs the firm has bought from others.
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Value added
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These are social security payments, welfare payments, and veterans' payments that the government makes directly to households.
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Public transfer payments
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Purely financial transactions and secondhand sales
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Nonproduction transactions
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Public transfer payments, private transfer payments, and stock market transactions.
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Financial transactions
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Simply transfer funds from one private individual to another.
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Private transfer payments
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The buying and selling of stocks
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Stock market transactions
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Selling previously purchased final goods.
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Secondhand sales
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Viewing GDP as the sum of all the money spent in buying it, the output approach
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Expenditures approach
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Viewing GDP as the sum of all the income created from producing it.
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Income approach
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All expenditures by households on goods and services.
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Personal consumption expenditures
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-All final purchases of machinery, equipment, and tools by business enterprises
-All construction -Changes in inventories |
Gross private domestic investment
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Only includes investment in the form of capital.
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Net private domestic investment
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-Expenditures for goods and services that government consumes in providing public services
-Expenditures for publically owned capital such as schools and highways |
Government purchases
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Exports minues imports
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Net exports
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Corporate income taxes, dividends, and undistributed corporate profits
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Corporate profits
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Taxes levied on corporations' profits
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Corporate income taxes
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Part of after-tax profits that corporations choose to pay out, or distribute, to their stockholders
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Dividends
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Any after-tax profites taht are not distributed to shareholders are saved, or retained, by corporations to be invested later in new plants and equipment
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Undistributed corporate profits
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Includes general sales taxes, excise taxes, business property taxes, license fees, and customs duties.
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Taxes on production and imports
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The total of all sources of private income (wage, rents, interest, proprietors' income, and corporate profits), plus government revenue from taxes on production and imports.
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National income
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Domestic output by foreigners minus foreign output by Americans
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Net foreign factor income
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The huge depreciation charge made against private and publically owned capital each year
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Consumption of fixed capital
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The result of, GDP - Consumption of fixed capital (depreciation)
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Net domestic product
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Includes all income received, whether earned or unearned.
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Personal income
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Personal income less personal taxes.
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Disposable income
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Measure of the price of a specified collection of goods and services, called a "Market Basket", in a given year as comparted to the price of an identical (or highly similar) collection of goods and services in a reference year. (Specific year/base year X100)
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Price index
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Nonmarket activities, leisure, improved product quality, underground economy, the environment, composition and distribution output, and noneconomic sources of well-being.
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Shortcomings of GDP
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Certain productive activities that do not take place in any market-- i.e. the services of a stay-at-home parent.
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Nonmarket activities
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GDP does not tell us whether the currently produced mix of goods and services is enriching or detrimental to society-- i.e. assault rifles vs encyclopedias-- and balanced or unbalanced distribution
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Composition and distribution output
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