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Econ 114 > 2.0: System of National Accounts > Flashcards

2.0: System of National Accounts Flashcards

(71 cards)

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1
Q

the aggregate total of all final goods and services produced within a country

A

GDP

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2
Q

in what is it assumed first, that all factors of production are owned by households

A

Standard Model

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3
Q

why are only final goods and services included in the standard model

A

to avoid double counting

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4
Q

government buys goods and services from ______ everything is ________

A

firms

privatized

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5
Q

GDP = GDI is an example of an

A

accounting identity

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6
Q

the aggregate earnings of domestic factors of production (capital, labour, and natural resources )

A

GDI

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7
Q

what are the 3 basic concepts of GDP:

A

stocks, flow and equity

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8
Q

a quantity that exists at a moment in time

A

stock

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9
Q

quantity added to or subtracted from a stock

A

flow

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10
Q

refers to the stock of plant, equipment etc.

A

Capital (with respect to GDP)

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11
Q

the decrease in capital stock resulting from wear and tear

A

depreciation

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12
Q

the flow of new capital where gross investment is the total flow of new capital and net is the flow of new capital less depreciation

A

investment

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13
Q

the total flow of new capital

A

gross investment

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14
Q

the flow of new capital less depreciation

A

net investment

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15
Q

refers to the stock of all property

A

wealth (with respect to GDP)

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16
Q

refers to the flow of money earned by supplying factors of production

A

income

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17
Q

refers to gross income minus net taxes

A

disposable income (respect to GDP)

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18
Q

disposable income spent on final goods and services

A

consumption (respect to GDP)

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19
Q

disposable income minus consumption

A

savings (respect to GDP)

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20
Q

the total earnings of households for supplying factors of production to firms and other countries including profits and dividends

A

GDI

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21
Q

refers to income (Y) - Net Taxes

A

disposable income (respect to GDI)

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22
Q

total spending by households for goods and services produced by firms

A

consumption (respect to GDE)

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23
Q

Income (Y) - disposable income (Yd)

A

savings (respect to GDE)

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24
Q

earning of firms from sale of sales of goods and services and financial transactions to gov. and other countries

A

revenue (respect to GDI)

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25
expenditures by firms for depreciation, new plant, etc. paid out of savings
investment (respect to GDE)
26
total taxes minus transfers from gov. to households
net taxes (respect to GDI)
27
goods and services purchased from firms, foreign and domestic
government expenditures
28
NT - G = 0
balance
29
NT - G > 0
surplus
30
NT - G < 0
deficit
31
accumulated deficits minus surpluses
dept
32
Net exports (NE) =
exports (X) - imports (M)
33
NE > 0
trade surplus
34
NE < 0
trade deficit
35
GNE (Ye) (gross national exports) =
C+I+G+NE
36
household earnings for supplying factors of production to firms (including profits/dividends spent on C+S+T)
GDI
37
identity: Yi =
C+S+T = Ye = C+I+G+NE
38
income not spent on domestically produces goods/services
leakages
39
leakages include
savings, taxes and imports
40
expenditure by firms, government and exports
injections
41
injections are represented by the formula
I+G+X
42
leakages are represented by the formula
S+T+M
43
injections must equal
leakages
44
3 ways you can measure GDP
expenditure, factor income, and value added
45
3 types of expenditures
personal expenditures, gov. expenditures, and exclusions
46
examples of business investments
plant and equipment: 1. new residential housing 2. inventories of raw materials 3. semi-finished products 4. unsold final products
47
government expenditures on goods and services exclude
transfer payments
48
why are intermediate goods/services excluded from measuring GDP
to avoid double counting
49
income received from factors of production
factor income
50
2 examples of expenditures that are excluded from GDP
1. intermediate (producer) goods | 2. used/second-hand goods
51
GDP is calculated by summing up the ______ by each agent that excludes the cost of _____
value added | inputs
52
GDP =
NDP + depreciation or capital consumption
53
NDP =
GDP - depreciation of capital goods
54
are collected by Statistics Canada using the Census and surveys
expenditure data
55
collected by Revenue Canada using tax data
income numbers
56
how do you measure the real GDP
calculate the aggregate price level
57
the average for the prices of all goods and services included in GDP
real GDP
58
measures the average level of prices of goods and services purchased by typical Canadian family
Consumer price index (CPI)
59
CPI uses a _____ to calculate the cost of a typical _________
base year | basket of goods and services
60
CPI calculates the cost of base year basket in subsequent years to determine
change in price level
61
CPI =
current cost of basic/base period cost x 100
62
measures the average level of prices of all goods and services in GDP
GDP deflator
63
is valued in current year prices
nominal GDP
64
is valued in base year prices
real GDP
65
advantage of GDP deflator over CPI is
GDP is not based on fixed basket of goods and services
66
CPI is often used for cost of living adjustments showing changes in the
purchasing power of money
67
used to measure the real growth of the overall economy
GDP deflator
68
CPI suffers from 3 technical biases that are not reflected in the base basket
1. substitutions 2. new goods (innovations) 3. quality change in good/service
69
with multi- or trans-national corporations there is the problem of i
intra-corporate transfer pricing
70
the emerging problem affecting calculation of real GDP
the knowledge-based/digital economy
71
total taxes minus transfers from gov. to households
net taxes

Econ 114 (7 decks)

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