It is the measurement of aggregate economic activity primarily developed by Simon Kuznets in the 1930's.
What is national-income accounting?
100
They are goods and services used by households and claim over two-thirds of our annual output.
What are consumption goods?
100
With some minor exceptions, the market value of this must equal the market value of output.
What is income?
100
Total income or GDP ends up being distributed in these three ways.
What are households, business, and government?
100
If the dollar value of output produced each year has risen considerably faster than the quantity of output, reflecting persistent increases in the price level, it is defined as this.
What is inflation?
200
It is the total market value of all final goods and services produced within a nation's borders in a given time period.
What is gross domestic product (GDP)?
200
The plant, machinery, and equipment we produce which claims over one-sixth of our total output.
What are investment goods?
200
GDP minus depreciation equals this.
What is NDP or net domestic product?
200
The flow of income that starts with GDP ultimately returns to the market in the form of new consumption, investment, and government purchases. It is referred to as this.
What is the circular flow of spending and income?
200
The alternative combinations of final goods and services that could be produced in a given time period with all available resources and technology.
What are production possibilities?
300
It serves as a measure of value for calculating total output.
What is price?
300
It is the third major use of GDP. Resources are used in the form of police, schools, and building the nation's infrastructure.
What is government spending or the public sector?
300
It is the total income earned by current factors of production: GDP less depreciation and indirect business taxes, plus net foreign factor income.
What is NI or national income?
300
Researchers at Fordham University devised this measure of gauging collective well-being using 16 different indicators which include infant mortality, drug abuse, and poverty among the aged.
What is the Index of Social Health?
300
It is the value of final output produced in a given period and adjusted for changing prices.
What is real GDP?
400
Goods or services purchased for use as input in the production of final goods or services.
What are intermediate goods?
400
It is the value of exports minus the value of imports.
What are net exports?
400
It is the income received by households before payment of personal taxes.
What is PI or personal income?
400
It is the income received by businesses that is kept and reinvested into the business.
What are retained earnings?
400
It is the value of final output produced in a given time period, adjusted for changing prices.
What is real GDP?
500
It is the value of final output produced in a given period and measured in the current prices of that period.
What is nominal GDP?
500
Once the components of output have been recognized, it is the formula used to compute GDP.
What is consumption expenditures + investment expenditures + government expenditures + net exports?
500
It is the after-tax income of households; personal income less personal taxes.
What is DI or disposable income?
500
National-income accounting emphasizes material well-being and economic growth, but does not account for the effects of this.
What is social health or social well-being?
500
It is the increase in the market value of a product that takes place at each stage of the production process.