Business Administration - Accounting & Financial Planning ECN502 Lecture Notes - Lecture 5: Gross Domestic Product, Transfer Payment, Old Age Security
20 Dec 2016
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Output of country: gross domestic product (gdp) The market value of all final goods and services in an economy during a specified period. Ordered 50 items at a grocery store. Counting costs instead of differences: example: wheat -> flour -> bread. Value added: difference between value of added and cost of input, wheat -> flour value added = . Intermediate products: products that requires further processing, could be another firm/company. Final product: good/service intended for sale, no further processing. Government transfer payment: payments made by the government that do no represent the payments for goods/services, government transfer to people/firm/government without correspondence of flow product/services. Payment transfer payment: transfer of one individual or group to another for which no goods/services are produced. Allowances: transfer payments are not included in gdp. Not represented in payments for goods/services produced. Income approach: a method of calculating gdp that involves measuring total i(cid:374)co(cid:373)e ge(cid:374)erati(cid:374)g i(cid:374) the process of produci(cid:374)g the eco(cid:374)o(cid:373)y"s.
