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11 Cards in this Set
- Front
- Back
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Disposable Income
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Disposable = total personal income - Taxes
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Gross Domestic Product
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GDP = C + G + I + X - IM, market value of all final goods and services produced within the borders of a nation in a year, Domestic produced within the borders
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Gross National Product
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GNP = GDP +income earned by citizens abroad - income earned by foreigner in country, Produced by the citizens
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Paradox of thrift
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Spiral less spending, less work, less earing, less spending and so on
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Stock
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is a share of ownership in a firm
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Total personal income
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Total Personal Income = Rent Payments + Wages + Interest + Profit + Government Transfers
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"INS"
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= Government Spending (G) + Consumption ( C) + Investiment (I) + Exports (X)
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"OUTS"
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= GDP + Imports (Im)
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Factors of production
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Labor, Land, Entrepeneurship/ Human Capital, Capital
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Payments of factors of production
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Labor= Wages, Land = Rent, Entrepeneurship = Profit, Capital = Interest
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Profit
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The return to entrepreneurs for taking risks to establish a business
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