GDP Flashcards
1
Q
2 approaches to measuring GDP
A
Income approach
Expenditure approach
2
Q
3 Categories of income
A
Compensation of employees- Payment for labour
Gross operating surplus- Distributed + undistributed profits
Mixed income- Rent and self-employment income
3
Q
What do households get paid by firms for?
A
Factor services
4
Q
Who are the consumers of the goods market? (4)
A
Households
Firms
Government
Rest of the world
5
Q
4 Limitations of GDP (Excludes…)
A
Household production
Underground economic activity
Leisure time
Environmental quality
