Econ Ch 13 Sec 1 Vocab

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Econ Ch 13 Sec 1 Vocab
2011-12-01 22:33:09
Econ 13 Sec Vocab

Econ Ch 13 Sec 1 Vocab
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  1. Gross Domestic Product
    Dollar value of all final goods, services, and structures produced within a country’s national borders during a one-year period.
  2. National income accounting
    System of accounts used to track the nation’s production, consumption, savings, and income statistics.
  3. Intermediate products
    Products directly excluded from GDP because they are components of other final products included in GDP; new tires and radios for use on new cars
  4. Secondhand sales
    Sales of used goods; category of activity not included in GDP computation.
  5. Nonmarket transactions
    Economic activity not taking place in the market and, therefore, not included in GDP; services of homemakers, work around the home.
  6. Underground economy
    Unreported legal and illegal activities that do not show up in GDP statistics.
  7. Gross national product
    Total dollar value of all final goods, services, and structures produced in one year with labor and property supplied by a country’s residents, regardless of where the production takes place; largest measure of a nation’s income.
  8. Net national product
    Gross National Product minus depreciation charges for wear and tear on capital equipment; measure of net annual production generated with labor and property supplied by a country’s citizens.
  9. National income
    Net national product less indirect business taxes; measure of a nation’s income.
  10. Personal income
    Total amount of income going to the consumer sector before individual income taxes are paid.
  11. Disposable personal income
    Personal income less individual income taxes; total income available to the consumer sector after income taxes
  12. Household
    Basic unit of consumer sector consisting of all persons who occupy a house, apartment, or separate living quarters.
  13. Unrelated individual
    Person living alone or with nonrelatives even though that person may have relatives living elsewhere.
  14. Family
    2 or more persons living together that are related by blood, marriage, or adoption
  15. Output-expenditure model
    Macroeconomic model describing aggregate demand by the consumer, investment, government, and foreign sectors; GDP = C + I + G + F
  16. Net exports of goods and services
    Net expenditures by the output-expenditure model’s foreign sector.