social 12 (econ)- chapter 10 Flashcards
the process used for tracking production, income, and consumption in a nation’s economy
national income accounting
includes spending on residential and nonresidential structures such as office space and factories, and capital goods such as machinery and office equipment
fixed investment
increase or decrease in the total dollar amount of the stock of raw materials, intermediate goods, and final goods of domestic business during a given period
inventory investment
expenditures for which the gov receives no goods or services in exchange. includes social security payments and various types of government aid
transfer payments
goods and services used to make products
intermediate goods
GDP adjusted for price changes
real GDP
an increase in the real dollar value of all final goods and services that are produced per person for a specified period of time
real GDP per capita
a measure of how much each worker produces in a given period of time
labor productivity
an increase in the output of each worker per hour of work
productivity growth
the amount of capital stock available per worker
capital to labor ratio
a increase in the amount of capital goods available per worker
capital deepening
gross domestic product
the total dollar value of all final goods and services produced within a country in a given calendar year
durable goods
items that have a useful lifetime of more than a year (automobiles, computers)
nondurable goods
items that have a short useful lifetime (food, cosmetics)
business cycle
changes is a market system’s economic activity
