Basic Concepts of Macroeconomics Flashcards
What is domestic/economic territory?
Geographical territory administered by government where person, goods and capital circulate freely.
What is a normal resident?
Individual or institution who resides in the country and has its centre of economic interest there.
What is Citizenship?
Legal concept on place of birth of the person.
What is Resident ship?
Economic concept on basic economic activities by a person.
What is Domestic Product?
Production units located in the economic territory.
What is national product?
Production activities by normal residents irrespective of territory.
What is Factor Income?
Income received by factors of production for giving services in the production process.
What is Transfer Income?
Income received without giving services in return.
What is current transfer income?
Regular in nature, meant for consumption.
What is capital transfer income?
Irregular in nature, meant for capital formation.
