Basic Concepts of Macro Economics
Core concepts of macroeconomics including domestic territory, normal residents, factor income, transfer income, classification of goods, investment, depreciation, net indirect taxes, and NFIA.
Topics(5)
Domestic Territory and Normal Residents
Understanding economic territory beyond political borders and the concept of normal residents for national income accounting.
Factor Income and Transfer Income
Distinction between factor income and transfer income, and their treatment in national income accounting.
Classification of Goods
Final vs intermediate goods, consumption vs capital goods, the production boundary concept, and the end-use criterion.
Investment, Depreciation and Net Indirect Taxes
Gross vs net investment, depreciation and its causes, net indirect taxes, and factor cost vs market price.
Net Factor Income from Abroad (NFIA)
NFIA formula, components, positive/negative/zero cases, and converting domestic income to national income.