ECO 1102 Lecture Notes - Lecture 4: Unemployment Benefits, Gdp Deflator

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25 May 2015

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Eco1102 - lecture 4 - measuring a nation"s income. The total income of everyone in the economy. The total expenditure on the economy"s production of goods and services. For the economy as a whole, income equals expenditure because every dollar a buyer spends is a dollar of income for the seller. Gdp is the market value of all final goods and services produced within a country in a given period of time. Market value means that all goods are valued at their market prices and measured in the same units (note! Housework and illicit activities do not have a market value ) Final goods and services are intended for the end user. Goods and services are both tangible goods and intangible services. Only newly produced goods does not include goods produced in the past. All production that occurs with a country"s border, whether done bby its own citizens or by foreigners located there.

Related Questions

Which of the following statements about GDP is correct

A) Money continuously flows from households to firms and then back to households, and GDP measures this flow of money

B) GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services.

C) While not perfect, GDP is generally regarded as the best single measure of a society’s economic well-being.

D) All of the above are correct.

emeraldmarten620

7. The difference between nominal GDP and real GDP is that nominal GDP:

	A.	measures a country's production of final goods and services at current market prices, whereas real GDP measures a country's production of final goods and services at the same prices in all years.
	B.	is measured in dollar terms, whereas real GDP is measured in terms of numbers of goods and services produced
	C.	measures the total value of only final goods and services, whereas real GDP measures the value of all goods and services, both intermediate and final
	D.	measures a country's production of final goods and services at fixed prices, whereas real GDP measures a country's production of all final goods and services at current market prices

carminekoala560

An improvement in technology causes the production possibilities frontier (PPF) to

	shift to the right.
	pivot upward.
	shift to the left.
	pivot downward.

(7)

Which of the following is not shown by the circular flow model?

	The flow of resources in one direction and money in the other
	The equality of aggregate spending and aggregate income
	The interaction of households, firms, and the government
	The total amount of goods and services the economy can produce

(8)

Gross domestic product (GDP) is defined as

	the market value of all final goods and services produced in an economy in a given period of time.
	the market value of all consumption goods and services produced in an economy in a given period of time.
	the market value of all investment goods and services produced in an economy in a given period of time.
	the real value of all investment goods and services produced in an economy in a given period of time.

(9)

Real GDP

	includes all domestic and foreign transactions.
	includes the dollar value of domestic transactions only.
	tries to isolate the effect of changing output, holding prices constant.
	measures GDP in terms of prices of goods and services produced.

(10)

When economists talk about economic growth, they are usually referring to

	the percentage change in nominal GDP.
	the percentage change in real GDP.
	the percentage change in nominal investment.
	the percentage change in real investment.

chocolateant769

ECO 1102 Lecture Notes - Lecture 4: Unemployment Benefits, Gdp Deflator

ECO 1102 Full Course Notes

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