| Term | Definition |
|---|
| gross domestic product | the final value of all goods and services produced within a country in a year |
| nominal GDP | gdp reported in current prices |
| real GDP | gdp adjusted for inflation |
| GDP deflator | the price index that reduces current prices into prices of a base year. |
| real per capital GDP | the real gross domestic product divided by a country's population |
| productivity | the output of good and services measured per unit of input by labor, capital, or land |
| labor productivity | the amount of goods and services the work force can produce during a given time period |
| fixed costs | costs that remain the same regardless of the amount of product a firm produces |
| variable costs | costs that change with changing amounts of production |
| average fixed costs | the total fixed costs divided by the quantity produced |
| average variable costs | total variable costs divided by quantity produced |
| total costs | the sum of the total fixed and total variable costs |
| average total costs | the sum of the average fixed and average variable costs |
| marginal costs | the additional cost of increasing a unit of production |
| law of diminish marginal returns | an economic principle which holds that as more and more variable resources are added to a fixed amount of other resources the additional amount produced eventually decreases |
| marginal revenue | the additional revenue generated form the sale of an additional quantity of product |
| total revenue | a calculation of revenue that is determined by a price times quantity sold |
| marginal analysis | decision making that involves comparing marginal benefits and marginal costs |
| economies of scale | reductions in cost resulting from large-scale production |
Combine with other sets
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