Unit 2 1/27/16

• Gross Domestic Product (GDP):it is the market value of all final goods and services produce with in a nation in a given year

                    - talking about FINAL GOOD AND SERVICES

• WHAT IS NOT INCLUDED IN THE GDP

                     1. INTERMEDIATE GOODS: Something that needs further processing
                         Ex: A car without an engine

                     2. USE OR SECOND HAND GOODS: We don't count that as a GDP because it was already purchase and not it is being resell

                     3. PURELY FINANCIAL TRANSACTIONS: We don't count it because if you invest in the stock market, it will take a while to return your money
                             -STOCKS AND BONDS

                      4. ILLEGAL ACTIVITY
                             -Drugs

                       5. UNREPORTED BUSINESS ACTIVITY
                             - TIPS:you working at a food restaurant and not  putting your tips in the system

                       6. NON MARKET ACTIVITY or TRANSACTIONS
                             - Volunteering
                             - Babysitting
                     
                        7. TRANSFER PAYMENTS
                             - Scholarships
                             - Welfare payment
                             - Social Security