Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
The movement of goods and services from firms to households, and of resources from households to firms
|
Circular flow of goods, services, and resources
|
|
The movement of income in the form of resource payments from firms to households, and of income in the form of revenue from households to firms
|
Circular flow of money
|
|
A method of calculating GDP that adds all expenditures made for final goods and services by households, firms, and government
|
Expenditure approach
|
|
Goods purchased for final use, not for resale
|
Final goods
|
|
Goods used to produce other goods
|
Intermediate goods
|
|
The difference between the value of a good that a firm produces and the value of the goods the firm uses to produce it
|
Value added
|
|
All goods and services bought by households
|
Personal consumption expenditures
|
|
In purchases by firms of plant, equipment, and inventory goods
|
Gross private domestic investment
|
|
All goods and services bought by government
|
Government purchases
|
|
An economy's exports to other economies, minus its imports from other economies
|
Net exports
|
|
Goods expected to last at least a year
|
Durable goods
|
|
Goods expected to last less than a year
|
Nondurable goods
|
|
productive activities that are instantaneously consumed
|
Services
|
|
Stocks of finished goods and raw materials that firms keep in reserve to facilitate production and sales
|
Inventory investment
|
|
A method of calculating GDP that adds all the incomes earned in the production of final goods and services
|
Income approach
|
|
The sum of all payments made to resource owners for the use of their resources
|
National income
|
|
The market value of all final goods and services in an economy produced by resources owned by people of that economy, regardless of where the resources are located
|
Gross national product (GNP)
|
|
The value of existing capital stock used up in the process of producing goods and services
|
Capital depreciation
|
|
National income, plus income received but not earned, minus income earned but not received
|
Personal income
|
|
income received but not earned
|
Transfer payement
|
|
personal income minus direct taxes
|
Disposable personal income
|
|
The unreported or illegal production of goods and services in the economy that is not counted in GDP
|
Underground economy
|