Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

21 Cards in this Set

  • Front
  • Back
National Income Accounting
Gathering and calculating economy-wide statistics on the total output of an economy
Gross Domestic Product (GDP)
The market value of all final goods and services produced in a year within one country. =C + I + G + X
Circular Flow Diagram
A model showing the flow of output and income between households and firms
Intermediate Goods
A good that is used as in imput in the production of final goods and services
Value Added
The difference between the vlue of output and the value of the intermetdiate gooods used in production of that output.
The stock of unsold goods held by a firm
Capital Consumption Allowance
The amount capital goods depreciate (wear out) and replaced in one year
Indirect Business Tax
A tax that is collected by business for a government agency.
Gross National Product (GNP)
GDP plus factor incomes from abroad minus payments of factor income to foreigners
Net National Product (NNP)
GNP - Capital Consumption Allowance
National Income
NNP - indirect business taxes
Personal Income
National Income + income received but not earned - income earned but not received
Transfer payment
Income transferred by the government from one citizen to another
Disposable Income
Personal Income - personal taxes
Nominal GDP
GDP in current prices (NOT compensated for Inflation)
Real GDP
GDP in prices from some base year (essentially GDP with inflation factored out).
GDP Adjusted for PPP
GDP figures adjusted such that cross national comparisons are possible. This adjustment takes varying costs of living into consideration.
The study of a country's economy as a whole.
Great Depression
A world wide economic collapse, during which GDPs fell and unemploymen rates skyrocketed.
Centrally Planned Economy
An economic system in which the government determins what goods and sercies are produced and the prices at which they are sold.
Mixed Economy
An economic system which has elements of the free market (generally private property) and central planning