Chapter 5 Flashcards
To learn the terms, formulas and main aspects of the chapter five on national income and product accounts.
National income accounting
The process of collecting, measuring, and recording data on the economy’s output
Statistics Canada
The special federal government agency responsible for collecting and publishing national economic and social statistics
Gross Domestic Product (GDP)
The market value of all final goods and services produced in an economy during a specific period
Double Counting
Counting an item more than once when measuring GDP
Value Added
The difference between the value of the output and the cost of the inputs
Intermediate Products
The outputs of one firm or industry that are used as inputs by other firms or industries
Final Product
A good or service intended for final use and not intended for resale or furthering processing
Private Transfer Payments
Transfers of purchasing power from one individual or group to another for which no goods and services are produced
Government Transfer Payments
Payments made by the government that do not represent payments for productive services (e.g., employment insurance payments, welfare payments, old age security payments)
Income Approach
A method of calculating GDP that involves measuring the total income generated in the process of producing the economy’s goods and services
Expenditure Approach
A method of calculating GDP that involves measuring the total amount spent on the economy’s total output of goods and services
Capital Consumption Allowance
An allowance made for the depreciation of the economy’s capital stock during production
Net Exports
The difference between a country’s sale of exports and its purchase of imports
Personal Income
The total income of individuals from all sources before personal income taxes are paid
Disposable Income
After-tax income that an individual can spend or save
