Quiz Nov 20 Flashcards
who is the biggest economic agent
Government
Define GDP
Total value of the goods and services produced WITHIN a country during a period of time
GDP starts with who’s choices
households
High GDP leads to (4)
high happiness
high life expectancy
Human development index
poor
the problem of GDP is that it misses ____________
the distribution of income
GDP per capita=
GDP/ Population
Limitations of GDP
Population
Inequality
Environment
Shadow economy
Nominal
vs
real
surface value; Dollar Value (short term)
refers to quantity and value (long term)
3 ways to measure GDP
Income
Expenditures
value-added
GDP formula
C+I+G+(X-M)
Things that dont count in GDP (3)
Intermediate goods
used goods
financial transaction (stocks or bonds)
Business to consumer
consumer to business
product market
resource market (factor of production)
GDP measure the ______
revenue (not profit)
PxQ