Econ 2200 Test 1 2

Front 1

Data collected and published by the government describing the
various components of national income and output in the economy.

Back 1

national income and product accounts

Front 2

The total market value of all final goods and services produced within a given period by factors of production located within a
country.

Back 2

gross domestic product (GDP)

Front 3

Goods and services produced for final use.

Back 3

final goods and services

Front 4

Goods that are produced by one firm for use in further processing by another firm.

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intermediate goods

Front 5

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.

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value added

Front 6

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.

Back 6

gross national product (GNP)

Front 7

a method of computing GDP that measures the amount spent on all final goods during a given period

Back 7

expenditure approach

Front 8

a method computing GDP that measures the income--wages, rents, interest and profits--received by all factors of production in producing final goods.

Back 8

income approach

Front 9

a major component of GDP: expenditures by consumers on goods and services

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personal consumption expenditures

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goods that last relatively long time, such as cars and household appliances

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durable goods

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goods that are used up fairly quickly, such as food and clothing

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nondurable goods

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the things we buy that do not involve the production of physical things, such as legal and medical services and education

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services

Front 13

total investment in capital--that is, the purchase of new housig, plants, equipment and inventory by the private (or nongovernment) sector.

Back 13

gross private domestic investment

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expenditures by firms for machines, tools, plants and so on

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nonresidential investment

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expenditures by households and firms on new houses and apartment buildings

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residential investment

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the amount by which firms inventories change during a period. inventories are the goods that firms produce now but intend to sell later.

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change in business inventories

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the amount by which an assets value falls in a given period.

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depreciation

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the total value of all newly produced capital goods(plant, equipment, housing, and inventory)produced in a given period

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gross investment

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gross investment minus depreciation

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net investment

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expenditures by federal, state, and local governments for final goods and services

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government consumption and gross investment

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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.

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net exports

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the total income earned by the factors of production owned by a country's ctiizens

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national income

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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

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compensation of employees

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the income of unincorporated businesses

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proprietors income

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the income received by property owners int he form of rent

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rental income

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the income of corporate businesses

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corporate profits

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the interest paid by business

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net interest

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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

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indirect taxes minus subsidies

Front 29

net transfer payments by businesses to others

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net business transfer payments

Front 30

income of government enterprises

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surplus of government enterprises

Front 31

gross national product minus depreciation; a nation's total product minus what is required to maintain the value of its capital stock

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net national product NNP

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data measurement error

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statistical discrepancy

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the total income of household before paying personal income taxes

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personal income

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personal income minus personal income taxes. the amount that households have to spend of save

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disposable personal income or after tax income

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the amount of disposable income that is left after total personal spending in a given period

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personal saving

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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.

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personal saving rate

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the current prics that one pays for goods and services

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current dollars

Front 38

gross domestic product measured in current dollars

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nominal GDP

Front 39

the importance attached to an item within a group of items

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weight

Front 40

the year chosen for the weights in a fixed weight procedure

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base year

Front 41

a procedure that uses weights from a given base year

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fixed weight procedure

Front 42

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.

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underground economy

Front 43

GNP converted into dollars using an average of currency exchange rates over several years adjusted for rates of inflation

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gross national income GNI