Tutorial 1 Flashcards
Value Added
sum of the unit profit, the unit depreciation cost, and unit labor cost
Economic Value Added
The profit earned by firm less the cost of financing the firms capital
Disposable Income
Income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes
Consumption of Home Produced Goods and Services
Final purchase of goods and services proaduced in the domestic country by individuals constitutes Ch
Net Factor Income
Income derived from selling the services of factors of production
Depreciation
A reduction in the value of an asset over time due to wear and tear
GNP
GDP + any income earned by residents from overseas investments - income earned within the domestic economy by overseas residents
NNP
Monetary value of G and S domestically produced by domestic citizens (both residents and away) - amount of GNP required to purchase new goods to maintain existing state
National Income
Total Value of a country’s final output of all new Goods and Services
CPI
An index of the variation in prices paid by typical consumers for retail goods and other items
GDP Inflator
An economic metric that accounts for inflation by converting output measured at current prices into constant dollar GDP
Current Account
That part of the BOP recording a nation’s exports and imports of goods and services and transfer of payments
Capital Account
That part of the BOP recording a nation’s outflow and inflow of financial securities
