eco dev - 3 midterms

get a hint

hint

gdp

gdp

sum of the value

peso value of all final goods and services that are produced in one country in a year

laissez-faire

minimizing government intervention when it comes to pricing, free market

peso value

monetary value

final goods and services

finished goods do not include intermediate goods

lack of natural resources

leadership

productivity

income inequality

lack of capital

reasons for low gdp

within the country

domestically produced

one year

does not include goods and services that were included in another year

expenditure

income

value-added

3 methods of calculating the GDP

expenditure

an approach that summarizes the total expenses to buy final goods and services by household, firms and the government

GDP = C+I+G+(X-M)

income

an approach that summarize the compensation of employees, net interest, rental income, corporate profits, and income of other firms

GDP = TOTAL INCOME + SALES TAXES + DEPRECIATION + NET FOREIGN FACTOR INCOME

sales tax

the tax imposed on consumers for the sale of goods and services

depreciation

the cost allocated to capital assets over an estimated useful life

net foreign factor income

income that citizens make while abroad, less the income generated by foreigners in the country

difference between OFW income and foreigners income in our country

value-added

an approach most common type of GDP calculation method aim to calculate all parts of production

GDP = GVO - VIC

gross value of output

any stages of production must be included

ex. Work in process

value of intermediate consumption

the cost of all goods used to produce the final goods

ex. cost of capital

real gdp

calculate the value of final goods and services at constant price

based on planning & production

gdp inflator

used to measure the value of money in a country over a specific year

differences between real and nominal

nominal gdp

calculates the gdp through the value of final goods and services at the current market prices

based on inflation rate

gross national product

sum of all the finished goods and services produced by the citizens of a country overseas and domestically

net national product

sum of all the finished goods and services produced by the citizens of a country overseas and domestically less depreciation

national revenue

composed of all revenue sources to be used in national expenditures

personal revenue

sum of an individual’s or citizen’s earnings / basic salary

disposable personal revenue

sum of an individual’s or citizen’s earnings less current individual taxes

kingdom of bhutan

is known for its application of a unique metric for the nation’s wealth and well being

gross national happiness

bhutan believes that this is a more important tool to use than GDP

economically, this is founded on the basics that happy people live longer and thus will need less public health funding.

genuine progress indicator

alternative metrics

founded on the index of sustainable economic welfare and growth