national income Flashcards
(26 cards)
national income
money value of all final goods and services produced in an economy
Concepts of National Income
GDP, GNP, NDP, NNP, Disposable income
what does gdp stand for
Gross Domestic Product
what is the equation for gdp
consumption + investment + government + (exports - imports)
What is gdp
the market value of all final goods and services produced within a country in a given period of time
What does gnp stand for
Gross National Product
What is the equation for gnp
GDP + NFIA
What is NFIA
net factor income from abroad. Its the difference between a country’s earnings from overseas and payments made to foreign investors
what does NDP stand for
Net Domestic Product
What is the equation for ndp
GDP - depreciation
What does nnp stand for
net national product
What is the equation for nnp
GDP - depreciation + nfia
what is per capita income
Average annual income per person
Equation for per capita income
national income / population
what is disposable income
income that can be spent on consumption
Equation for disposable income
personal income - personal taxes
Does gdp measure happiness or quality of life?
no
What are the methods of measuring national income
(product) output method, income method, expenditure method
what is value added
Market value of all goods and services produced in a country
What are the three economic sectors
primary sector, secondary sector, tertiary sector
What is growth rate
an increase in the capacity of an economy to produce goods and services compared from one period to another
What does the term ‘real’ indicate
that inflation has been accounted for
How is economic growth measured
The country’s GDP in a year
What are the factors of economic growth
Land, labor, capital and enterprise
