Economics Ch7

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Economics Ch7
2013-10-12 13:21:10

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  1. the techniques used to measure the overall production of the ecoonmy and other related variables for the nation as a whole
    national income accounting
  2. the total market value of all final goods and services produced annually within the boundaries of the United States, whether by U.S. or foreign-supplied resources
    gross domestic product (GDP)
  3. products that are purchased for resale or further processing or manufacturing
    intermediate goods
  4. goods that have been purchased for final use and not for resale or further processing or manufacturing
    final goods
  5. wrongly including the value of intermediate goods in the gross domestic product; counting the same good or service more than once
    multiple counting
  6. the value of the product sold by a firm less the value of the products (materials) purchased and used by the firm to produce the product
    value added
  7. the method that adds all expenditures made for final goods and services to measure the gross domestic product
    expenditures approach
  8. the method that adds all the income generated by the production of final goods and services to measure the gross domestic product
    income approach
  9. the expenditures of households for durable and nondurable consumer goods and services
    personal consumption expenditures (C)
  10. expenditures for newly produced capital goods (such as machinery, equipment, tools, and buildings) and for additions to inventories
    gross private domestic investment (Ig)
  11. gross private domestic investment less consumption of fixed capital; the addition to the nation's stock of capital during the year
    net private domestic investment
  12. expenditures by government for goods and services that government consumes in providing public goods and for public (or social) capital that has a long lifetime; the expenditures of all governments in the economy for those final goods and services
    government purchases (G)
  13. exports minus imports
    net exports (Xn)
  14. total income earned by resource suppliers for their contributions to gross domestic product; equal to the gross domestic product minus nonincome charges, minus net foreign factor income
    national income
  15. such taxes as sales, excise, and business property taxes, license fees, and tariffs that firms treat as costs of producing a product and pass on (in whole or in part) to buyers by charging higher prices
    indirect business taxes
  16. an estimate of the amount of capital worn out or used up (consumed) in producing the gross domestic product; also called depreciation
    consumption of fixed capital
  17. gross domestic product less the part of the year's output that is needed to replace the capital goods worn out in producing the output; the nation's total output available for consumption or additions to the capital stock
    net domestic purchase (NDP)
  18. the earned and unearned income available to resource suppliers and other before the payment of personal taxes
    personal income (PI)
  19. personal income less personal taxes; income available for personal consumption expenditures and personal saving
    disposable income (DI)
  20. the GDP measured in terms of the price level at the time of measurement (unadjusted for inflation)
    nominal GDP
  21. an index number that shows how the weighted-average price of a "market basket" of goods changes over time
    price index
  22. gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year, the index expressed as a decimal
    real GDP
  23. an index that measures the prices of a fixed "market basket" of some 300 goods and services bought by a "typical" consumer
    consumer price index (CPI)
  24. found by dividing real GDP by population
    per capita output