Self Learnt Finance Flashcards
(12 cards)
What is a term meaning the times a dollar is spent per year
The velocity of money
What is the most common measure for the size of an economy, measuring the market value of the total output of goods and services produced within an economy in a year.
GDP - Gross Domestic Product
What is a finished good/service?
A good/service that will not be resold as a part of some other good.
Does the sale of intermediate goods count towards GDP?
No
Intermediate goods are like the flour the baker buys to make a cake and sell it.
Does the sale of capital goods count towards GDP?
Yes
Capital goods are like the tractor a farmer will buy in order to harvest crops. They are not consumed in the making of the finished good making them capital goods.
If an old house was sold would this contribute to GDP?
No
Nothing has been produced
If a new house was sold would this count towards GDP?
Yes
A house has been produced
If a bottle of wine is bought and exported from France to Australia, which countries GDP would increase?
France’s
What type of GDP is not adjusted for price changes over time?
Nominal GDP
What type of GDP is adjusted for price changes over time?
Real GDP
How do you calculate real GDP per capita?
Divide real GDP by the population of the economy
What is the name of a fund that is professionally and actively managed by a stock manager?
A mutual fund
