Chapter 1 Flashcards
1
Q
Define GDP
A
gross domestic product
Is the market value of the final goods and services within a country
In a given time period
2
Q
Why is domestic product ‘gross’
A
‘Gross’ means before subtracting capital depreciation
And the opposite of ‘gross’ is ‘net’
Which means after subtracting capital depreciation
3
Q
What is gross investment
A
The total amount spent on both buying new capital and rep,acing deprecated capital
4
Q
What is net investment
A
The total amount by which the value of capital increases
