ECON282 Lecture Notes - Lecture 6: Best Buy, Transfer Payment, Negative Number
24 Jan 2018
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Document Summary
When you spend money, it is income for another person. Regardless of which approach is used, they all give the same result. Canadian factors of production (canadian companies, canadian workers) i. e. if a canadian worker is working in south. Africa and made 000 that year then, their income will count toward gnp not. Factor payments - what you receive in exchange for your labour, capital, land. Calculated by: gdp - gnp = net factor payment. Negative number means that there"s a lot of foreign workers. A transfer payment is when the gov"t gives. A transfer payment is when the gov"t gives money to someone/ business and don"t expect anything in return. When the gov"t gives a teacher or police money, they expect something in return (i. e. educational services and protective services respectively) Tells us about whether higher gdp is the result of more production.
