TAILIEUCHUNG - Lecture Principles of economics - Chapter 8: Measuring a nation’s income

After completing this chapter, students will be able to: Consider why an economy’s total income equals its total expenditure, learn how gross domestic product (GDP) is defined and calculated, see the breakdown of GDP into its four major components, learn the distinction between real GDP and nominal GDP, consider whether GDP is a good measure of economic well-being. | 8 THE DATA OF MACROECONOMICS 23 Measuring a Nation’s Income Measuring a Nation’s Income Microeconomics Microeconomics is the study of how individual households and firms make decisions and how they interact with one another in markets. Macroeconomics Macroeconomics is the study of the economy as a whole. Its goal is to explain the economic changes that affect many households, firms, and markets at once. Measuring a Nation’s Income Macroeconomics answers questions like the following: Why is average income high in some countries and low in others? Why do prices rise rapidly in some time periods while they are more stable in others? Why do production and employment expand in some years and contract in others? THE ECONOMY’S INCOME AND EXPENDITURE When judging whether the economy is doing well or poorly, it is natural to look at the total income that everyone in the economy is earning. THE ECONOMY’S INCOME AND EXPENDITURE For an economy as a whole, income must equal expenditure because: .

• Kinh tế học
• Principles of economics
• Lecture Principles of economics
• Measuring nation’s income
• Economy’s income
• Gross domestic product
• Components of GDP
• Ten principles of economics
• People face tradeoffs
• Opportunity cost
• Marginal changes
• Economics of information
• Consumer choice
• Free rider problem
• Market transactions
• Welfare Economics
• Consumer surplus
• Demand curve
• Efficiency of markets
• Nature of an externality
• Market inefficiency
• Negative externalities
• Principles of microeconomics
• Lecture Principles of microeconomics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Principles of agricultural economics
• Agricultural economics
• Economics of agricultural production
• Theory of consumer behaviour
• Economics of market demand
• Dynamics in demand analysis
• Analysis of agricultural markets
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• Economics of trade
• Costs of taxation
• Deadweight loss
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• Supply side economics
• Market forces
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• Thinking like an economist
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• Circular flow diagram
• Production possibilities frontier
• The gains from trade
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• Costs of production
• Total revenue
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• Opportunity costs
• Price elasticity of demand
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• Midpoint method
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• Factors of production
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• Macroeconomic policy
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• Stabilize the economy
• Monetary policy