16466 Chapter Notes - Chapter 11: Gross National Product, Measures Of National Income And Output, Factor Cost
Document Summary
Economics for today measuring the size of the economy chapter 11. Key points: gross domestic product (gdp, further on measuring gdp, the expenditure approach, gdp shortcomings as a measure of economic welfare, other national accounts, relationship between community (national) saving and investment, changing nominal gdp to real gdp. Gross domestic product: a measure of a nation"s economic performance. On the other hand, australia"s gnp excludes foreign-owned toyota australia"s profits from its australian car manufacturing operations, while gdp includes it. Non-productive financial transactions: gdp does not count transactions such as giving gifts, stocks and/or bonds, or making transfer payments, transfer payments are government payments to individuals, not in exchange for goods or services currently produced, for example: Concept of value added: gdp at market price () includes tax, gdp at market price: a measure of gdp arrived at by valuing gdp produced at the prices at which the goods and services sell.
