ECON 2100 Ch. 15 with complete verified solutions.

ECON 2100 Ch. 15 with
complete verified solutions
GDP (Gross Domestic Product) - answer The market value of all final goods &
services produced within a country in a given period of time


GDP measures - answer 1) Total income of everyone in the economy, or
2) Total expenditure on the economy's output of goods & services
(Income = expenditure)


How to measure GDP - answer 1) Add total expenditure by households, or
2) Add up total income (wages, rent, & profit) paid by firms


GDP includes v. GPD doesn't include - answer Includes:
- Housing rent (gov. estimates rental value)


Doesn't include:
- Illegal things (drugs, sex trafficking, etc.)
- Things you make and consume by yourself w/o it exiting your household


GDP includes only the value of _____ goods, not ______ goods - answer Final,
immediate
- Final good: Hallmark card, v. immediate good: paper
- Immediate good value already included in final good value, except for
inventory purposes
- Includes both goods & services currently produced, not resold goods. (New
car, not used cars)


GDP only includes production within a _____ - answer Country