Is used products sold considered in GDP? yes or no
No, GDP includes only those items that are traded in markets.
What is Gross domestic product (GDP)?
The market value of all the final goods and services produced within a country in a given time period.
What are the Factors of Production? (4)
What household receive what income?
- Labor earns wages.
- Capital earns interest.
- Land earns rent.
- Entrepreneurship earns profits.
Is expenditure equal to income?
Yes, Because firms pay out everything they receive as incomes to the factors of production (Y), total expenditure equals total income.
That is: Y = C + I + G + NX
The value of production equals income equals expenditure.
Is, GDP = Expenditure = Income?
What is consumption expenditure?
Consumption expenditure is the total payment for consumer goods and services, shown by the red flow labelled C.
Real GDP is the value of the final goods and services produced in a given year expressed in the prices of the base year.
Nominal GDP is the value of the final goods and services produced in a given year expressed in the prices of that same year.