Topic 2.1 Basics

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Private Sector

Back

Run by individuals and businesses

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Public Sector

Back

Controlled by the government

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Factor Payments

Back

Rent, wages, interest, profit

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Transfer Payments

Back

Government redistributes income in direct movement of money NOT for goods or services.

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Subsidies

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Government payments to businesses

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Gross Domestic Product (GDP)

Back

Dollar value of all final goods/services produced in a year

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Dollar value

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amount measured in US dollars

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Final goods

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GDP counts only new goods/services

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Within a country

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GDP measures production within borders

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One Year

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GDP measures annual economic performance