The same as capital goods, such as plant, buildings, vehicles and machinery

Products which one firm buys off another and then uses up in its own products

All inputs bought by firms, including labour and raw materials

Imports

The same as the term intermediate goods and services

The same as the term consumer goods and services

All goods and services except those traded second hand

Goods and services which are finished as far as the economy is concerned

Purchases of capital goods are called investment

GDP equals the total value of wages received by households

In a simple economy with just households and firms, the value of investment equals the value of saving

In a simple economy with just households and firms, the value of investment plus consumers’ expenditure equals GDP

GDP measures the value of all the goods and services produced in the economy

GDP stands for gross domestic product

GDP excludes intermediate goods and services

GDP equals wages plus trading profits

Microeconomics is concerned chiefly with the economy as a whole

Macroeconomics is concerned chiefly with individual markets

Governments have no influence over market prices

When economists study the price in a market, their chief aims are to understand why the price is what it is and why it may change