Term
|
Definition
| The study of how individual households and firms make decisions, interact with one another in markets |
|
|
Term
|
Definition
| the study of the system as a whole |
|
|
Term
| Gross Domestic Product = _ _ _ |
|
Definition
|
|
Term
| GDP or Gross Domestic Product is... |
|
Definition
| the measure of the total income of everyone in the economy. |
|
|
Term
| labor, land, capital, and natural resources are... |
|
Definition
| inputs; "Factors of production" |
|
|
Term
| Factor payments are payments to the... what? |
|
Definition
| Factors of production (e.g., wages, rent) |
|
|
Term
| ____________________ is the market value of all final goods & services produced within a country in a period of time |
|
Definition
| Gross Domestic Product(GDP) |
|
|
Term
what are Final goods?
(think pizza) |
|
Definition
| intended for the end user |
|
|
Term
what are Intermediate goods?
(again think pizza) |
|
Definition
| used as components or ingredients in the production of other goods |
|
|
Term
| what are the 4 components of GDP? |
|
Definition
| Consumption (C), Investment (I), Government Purchases (G) and Net Exports (NX) |
|
|
Term
| _______________ = total spending by households; includes rent payments but not purchase price or mortgage payments |
|
Definition
|
|
Term
| ______________ = total spending on good that will be used in the future to produce more goods |
|
Definition
|
|
Term
| _______________ = all spending on the g&s purchased by govt at the federal, state and local level |
|
Definition
|
|
Term
______________ = exports-imports
(GDP) Y=C+I+G+NX |
|
Definition
|
|
Term
|
Definition
| values output using current prices; not corrected |
|
|
Term
|
Definition
| values output using the prices of a base year; is corrected for inflation |
|
|
Term
| what is the GDP Deflator? |
|
Definition
| 100 x (nominal GDP )/(real GDP) |
|
|
Term
| __________________ computes the percentage increase in the GDP deflator from one year to the next |
|
Definition
|
|
Term
|
Definition
- the quality of the environment
- leisure time
- non-market activity, such as the child care a parent provides his or her child at home
- an equitable distribution of income |
|
|
