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Chapter 2: Measuring a nation’s income

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Môn Kinh tế vĩ mô Đại học Tôn Đức Thắng: chương trình liên kết ngành Quản Trị Kinh Doanh Môn này gồm tổng cộng 8 chương với các bài giảng về vận hành kinh tế của một quốc gia, xuất nhập khẩu,... Tất cả tài liệu đều được giảng bằng tiếng Anh

Chapter 02 Measuring a Nation’s Income Teacher: Nguyen Thanh Nhan Course: Macroeconomics- 702021 07/17/2023 702021_Measuring a Nation’s Income Economics • Microeconomics – Study of how households and firms • Make decisions • Interact in markets • Macroeconomics – Study of economy-wide phenomena • Including inflation, unemployment, and economic growth 07/17/2023 702021_Measuring a Nation’s Income Review Main Vocabulary of Chapter 01 1) Assumptions (Giả thiết) 2) Circular-flow diagram (Biểu đồ chu chuyển kinh tế) 3) Firms & Households (Doanh nghiệp Hộ gia đình) 4) Production possibilities frontier (Đường Giới hạn khả sản xuất) 5) Technological advance (Lợi Khoa học Kỹ thuật) 6) Specialization and trade (Chun mơn hóa thương mại) 07/17/2023 702021_Measuring a Nation’s Income Ten Principles of Economics 07/17/2023 702021_Measuring a Nation’s Income Table 4 Society’s economic well-being • Gross Domestic Product (GDP) (Tổng sản phẩm quốc nội) is the most widely-used – Measures the total income of everyone in the economy – Measures the total expenditure on the economy’s output of goods and services • For an economy as a whole – Income must equal expenditure, because every transaction has two parties: a buyer and a seller – Inventory investment is treated as expenditure of the producer 07/17/2023 702021_Measuring a Nation’s Income Economy’s Income & Expenditure • Circular-flow diagram – assumptions: – Markets (Thị trường-”TT”) • Goods and services (TT hàng hóa dịch vụ) • Factors of production (TT yếu tố sản xuất) – Households (Hộ gia đình) • Spend all of their income • Buy all goods and services – Firms (Doanh nghiệp) • Pay wages, rent, profit to resource owners 07/17/2023 702021_Measuring a Nation’s Income The Circular-Flow Diagram Figure Households buy goods and services from firms, and firms use their revenue from sales to pay wages to workers, rent to landowners, and profit to firm owners GDP equals the total amount spent by households in the market for goods and services It also equals the total wages, rent, and profit paid by firms in the markets for the factors of production 07/17/2023 702021_Measuring a Nation’s Income The Measurement of GDP • Gross domestic product (GDP) – Market value of all final goods and services – Produced within a country – In a given period of time • “GDP is the market value…” – Market prices - reflect the value of the goods 07/17/2023 702021_Measuring a Nation’s Income The Measurement of GDP • “… of all…” – All items produced in the economy • And sold legally in markets – Excludes most items • Produced and sold illicitly • Produced and consumed at home 07/17/2023 702021_Measuring a Nation’s Income The Measurement of GDP • “… final…” – Value of intermediate goods (hàng hóa trung gian) is already included in the prices of the final goods (hàng hóa cuối cùng) • “… goods and services…” – Tangible goods & intangible services (Hàng hóa vơ hình & Dịch vụ hữu hình) • “… produced…” – Goods and services currently produced 07/17/2023 702021_Measuring a Nation’s Income 10

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