National Income Accounting (Chapter 5) Flashcards
1
Q
gross domestic product (GDP)
A
- market value of all final goods and services produced within a region in a given period of time
2
Q
value added
A
- value of output produced minus value of purchased inputs
3
Q
consumption (C)
A
- all goods and services produced and sold to households during a given period of time
- categories include services, non-durables, semidurables, and durables
4
Q
investment (I)
A
- production of final goods not for present consumption
- categories include business spending, inventory changes, and residential construction
5
Q
government spending (G)
A
- valued at cost
- transfer payments are excluded
6
Q
net exports (NX)
A
- Exports (X) - Imports (I)
7
Q
income GDP
A
- wages and salaries (W)
- unincorporated business income (U)
- corporate profits (PR)
- interest and other investment income (N)
- indirect taxes (IT)
- Depreciation (D)
8
Q
factor incomes
A
= wages and salaries (W) +unincorporated business income (U) +corporate profits (PR)+ interest and other investment income (N)
9
Q
GDP
A
= factor incomes (W+U+PR+N) + indirect taxes (IT) + depreciation (D)
10
Q
gross national product (GNP)
A
- value of income earned by citizens of a country
= GDP + Net Foreign Investment Income (NFII)
11
Q
personal income (PY)
A
- income received by households and unincorporated businesses
12
Q
disposable income (DY)
A
= personal income (PY) - personal taxes (PT)
13
Q
legitimate omissions from measured national income
A
- financial transactions (transfer payments, security transactions)
- second hand sales
14
Q
unmeasurable omissions from measured national income
A
- underground economy
- illegal activities
- unreported activities
15
Q
per capita GDP (GDP/population)
A
- used as main indicators of quality of life
