Economics 1022A/B Chapter Notes - Chapter 20: Final Good, Retained Earnings, In Country
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ECON 1022A/B Full Course Notes
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Gross domestic product: the market value of the final goods and services produced within a country in a given time period. Market value of goods: to measure total production must account for the market values of each individual product and its production quantity. In country production: only goods/services produced within a country count as a part of that country"s gdp. In time period: gdp measures the value of production in a given time period normally a quarter year. The government consists of households, firms, governments, and the rest of the world which trade in factor markets and goods markets. Households sell and firms buy the services of labour, capital, and land in factor markets. Firms" retained earnings are part of the household sector"s income. Consumption expenditure: the total payment for consumer goods and services. Firms buy and sell capital equipment in the goods market: when firm adds unsold output to inventory, firm buys goods from itself.