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43 Cards in this Set

  • Front
  • Back
Data collected and published by the government describing the
various components of national income and output in the economy.
national income and product accounts
The total market value of all final goods and services produced within a given period by factors of production located within a
gross domestic product (GDP)
Goods and services produced for final use.
final goods and services
Goods that are produced by one firm for use in further processing by another firm.
intermediate goods
The difference between the value of goods as they leave a stage of production and the cost of the goods as they entered that stage.
value added
The total market value of all final goods and services produced within a given period by factors of production owned by a
country’s citizens, regardless of where the output is produced.
gross national product (GNP)
a method of computing GDP that measures the amount spent on all final goods during a given period
expenditure approach
a method computing GDP that measures the income--wages, rents, interest and profits--received by all factors of production in producing final goods.
income approach
a major component of GDP: expenditures by consumers on goods and services
personal consumption expenditures
goods that last relatively long time, such as cars and household appliances
durable goods
goods that are used up fairly quickly, such as food and clothing
nondurable goods
the things we buy that do not involve the production of physical things, such as legal and medical services and education
total investment in capital--that is, the purchase of new housig, plants, equipment and inventory by the private (or nongovernment) sector.
gross private domestic investment
expenditures by firms for machines, tools, plants and so on
nonresidential investment
expenditures by households and firms on new houses and apartment buildings
residential investment
the amount by which firms inventories change during a period. inventories are the goods that firms produce now but intend to sell later.
change in business inventories
the amount by which an assets value falls in a given period.
the total value of all newly produced capital goods(plant, equipment, housing, and inventory)produced in a given period
gross investment
gross investment minus depreciation
net investment
expenditures by federal, state, and local governments for final goods and services
government consumption and gross investment
the difference between exports (sales to foreigners of US- produced goods and services) and imports(US purchases of goods and services from abroad). the figure can be positive or negative.
net exports
the total income earned by the factors of production owned by a country's ctiizens
national income
includes wages, salaries and various supplements--employer contributions to social insurance and pension funds, for example--paid to households by firms and by the government
compensation of employees
the income of unincorporated businesses
proprietors income
the income received by property owners int he form of rent
rental income
the income of corporate businesses
corporate profits
the interest paid by business
net interest
taxes such as sales taxes, customs duties, and license fees, less subsidies that the government pays for which it receives no goods or services in return
indirect taxes minus subsidies
net transfer payments by businesses to others
net business transfer payments
income of government enterprises
surplus of government enterprises
gross national product minus depreciation; a nation's total product minus what is required to maintain the value of its capital stock
net national product NNP
data measurement error
statistical discrepancy
the total income of household before paying personal income taxes
personal income
personal income minus personal income taxes. the amount that households have to spend of save
disposable personal income or after tax income
the amount of disposable income that is left after total personal spending in a given period
personal saving
the percentage of disposable personal income that is saved. if the personal saving rate it low, households are spending a large amount relative to their incomes;if it it high, households are spending cautiously.
personal saving rate
the current prics that one pays for goods and services
current dollars
gross domestic product measured in current dollars
nominal GDP
the importance attached to an item within a group of items
the year chosen for the weights in a fixed weight procedure
base year
a procedure that uses weights from a given base year
fixed weight procedure
the part of the economy in which transactions take place and in which income is generated that is unreported and therefore not counted in GDP.
underground economy
GNP converted into dollars using an average of currency exchange rates over several years adjusted for rates of inflation
gross national income GNI