Detailed notes on all the topics covered throughout the semester. Gross Domestic Product The total market value of all final goods and services produced in the economy during a specific period. Only the value of final g+s is counted to avoid double counting (e.g. intermediate goods that are subject to further processing, manufacturing or resale) • Market value = price * quantity (in money terms, not physical units) o therefore could produce less but if the price increase is greater, can still increase GDP Excludes non-productive transactions (transactions where no production of goods and services occurs) Two major types of non-productive transactions: • Purely financial transactions • Sales of second-hand goods Non-productive activities include: • Transfer payments (e.g. gifts, aid, welfare payments) • Stock market transactions o Involve the swapping of paper assets and hence do not involve current production  Income such as dividends from shares DOES count towards GDP however • Considered income from profits of company unlike other financial transactions • Second-hand (used) products