Business Administration - Accounting & Financial Planning ECN502 Chapter Notes - Chapter 2: Transfer Payment, Operating Surplus
28 Oct 2016
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National income accounting: the process of collecti(cid:374)g, (cid:373)easuri(cid:374)g, a(cid:374)d recordi(cid:374)g data o(cid:374) the eco(cid:374)o(cid:373)(cid:455)"s output, gives sense of health of the economy over time, provides information of pattern of economic activity, examples: Statistics canada: the special federal government agency responsible for collecting and publishing national economic and social statistics. Market value: adding monetary terms to all the items produced during the year: total money value vs. what was bought, worth. Double counting: the error of counting an item more than once when measuring gdp, like when farmers sell wheat 10 mill then bakery sells bread for 20 million. Value added: the difference between the value of the output and the cost of inputs. Intermediate products: the outputs of one firm or industry that are used as inputs by other firms or industries. Final product: a good or service intended for final use and not intended for resale or further processing, like retails stores selling to consumers.
