Economics Chapter 7

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Economics Chapter 7
2010-03-02 18:10:47
Econ 1500 chapter 7

Key terms and questions from chapter 7
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  1. Gross Domestic Product
    GDP- is the total market value of all final goods and services produced in an economy in a one-year period
  2. Consumption
    is spending by households on goods and sercices
  3. Investment
    is spending for the purpose of additional production
  4. Government Spending
    is goods and services that government buys.
  5. Transfer Payments
    payments to indviduals that do not involve production by those individuals.
  6. Net Exports
    spending on goods and services produced in t United States that foreigners buy (exports) minus goods and services produced abroad that U.S citizens buy (imports)
  7. Wealth Accounts
    a balance sheet of an economy's stock of assets and liablilities.
  8. Final Output
    goods and services purchased for their final use.
  9. Intermediate Products
    products used as an input in the production of some other product.
  10. Value Added
    is the increase in value that a firm contributes to a product or service.
  11. Depreciation
    the decrease in an asset's value
  12. Net Domestic Product
    NDP- is GDP-depreciation
  13. Net Investment
    Gross investment less depreciation.
  14. Gross National Product
    GNP- the aggregate final output of citizens and businesses of an economy in a one year period.
  15. Net Foreign Factor Income
    the income from foreign domestic factor sources minus foreign factor income earned domestically.
  16. Nominal GDP
    GDP calculated at existing prices
  17. Real GDP
    nominal GDP adjusted for inflation.