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Rosela Gracia F.

BSBA – II (OM) FEB. 2, 2019
Gross domestic product
Gross domestic product is a monetary measure of the market value of all the final goods
and services produced in a period of time, often annually or quarterly. Nominal GDP
estimates are commonly used to determine the economic performance of a whole
country or region, and to make international comparisons.
Gross national income
The gross national income, previously known as gross national product, is the total
domestic and foreign output claimed by residents of a country, consisting of gross
domestic product, plus factor incomes earned by foreign residents, minus income
earned in the domestic economy by nonresidents.
Consumption Expenditure is the spending by households on goods and services,
excluding new housing.

In accounting terms, depreciation is defined as the reduction of
recorded cost of a fixed asset in a systematic manner until the value of
the asset becomes zero or negligible.

Net value added is the value of output less the values of both intermediate
consumption and consumption of fixed capital.
Intermediate sale
An intermediate good is a product used to produce a final good or finished product.
These goods are sold between industries for resale or the production of other goods.
Income at constant prices
If goods and services produced in a year are valued at fixed prices, i.e., prices of the
base year, we get national income at constant prices. Constant prices refer to
the prices prevailing in the base year. A base year is a carefully chosen year which is a
normal year free from price fluctuations.

National income is an uncertain term which is used interchangeably with national

dividend, national output and national expenditure. On this basis, national income has

been defined in a number of ways. In common parlance, national income means the

total value of goods and services produced annually in a country.

Personal income, aka "before-tax income", is the total annual gross earnings of an

individual from all income sources, such as: salaries and wages, investment interest

and dividends, employer contributions to pension plans, and rental properties.

A dividend is the distribution of reward from a portion of company's earnings, and is
paid to a class of its shareholders. Dividends are decided and managed by the
company's board of directors, though they must be approved by the shareholders
through their voting rights.
Final expenditure approach
The expenditure method is the most widely used approach for estimating GDP, which
is a measure of the economy's output produced within a country's borders irrespective
of who owns the means to production. The GDP under this method is calculated by
summing up all of the expenditures made on final goods and services.
Industrial Origin Approach
It is also called value added approach where all the contributions of each industry like
agriculture, industry, and services are computed. The value of the products depends
on the contribution of every sector in the processing and production of goods and
Indirect taxes
it can be defined as taxation on an individual or entity, which is ultimately paid for by
another person. The body that collects the tax will then remit it to the government. ...
Some indirect taxes are also referred to as consumption taxes, such as a value-
added tax (VAT).
Durable investment
An individual's wealth is preserved by spending a high proportion of his income
ondurable, capital or investment goods, which are goods that retain their economic
value for longer periods of time. Net foreign factor income (NFFI) is the difference
between the aggregate amount that a country's citizens and companies earn abroad,
and the aggregate amount that foreign citizens and overseas companies earn in that
country. In mathematical terms, NFFI = GNP - GDP.
Transfer payment
A transfer payment, in the United States, is a one-way payment to a person for
which no money, good, or service is given or exchanged. Transfer payments are made
to individuals by the federal government through various social benefit programs.
Gross national product (GNP)
is an estimate of total value of all the final productsand services turned out in a given
period by the means of production owned by a country's residents. ... Net exports
represent the difference between what a country exports minus any imports of goods
and services.
Transfer payment
In the United States, is a one-way payment to a person for which no money, good, or
service is given or exchanged. Transfer payments are made to individuals by the
federal government through various social benefit programs.
Investment expenditure
Refers to the expenditure incurred either by an individual or a firm or the government
for the creation of new capital assets like machinery, building etc.
Value added
Describes the enhancement a company gives its product or service before offering the
product to customers.
Stock and flow
Economics, business, accounting, and related fields often distinguish between
quantities that are stocks and those that are flows. These differ in their units of
measurement. A stock is measured at one specific time, and represents a quantity
existing at that point in time, which may have accumulated in the past.
Final Sale
Items are items that we are clearing from our inventory. They are new, designer-
label items being offered at deep discounts. They may NOT be returned because they
are so deeply discounted. Coupons cannot be used on
these items. Items marked Final Sale cannot be returned.
Nominal income
Is that part of your salary that is paid out in cash. It is your income in actual currency
terms unadjusted for what is termed as inflation. ... A 10 percent inflation
rate means that prices in the current period are about 10 percent higher than that of
the same period a year ago.
Income at Factor cost
Factor cost has the following uses in economics :Factor cost or national income by
type of income is a measure of national income or output based on the
cost of factors of production, instead of market prices. This allows the effect of any
subsidy or indirect tax to be removed from the final measure.
Corporate income
An assessment levied by a government on the profits of a company. The rate of
corporate income tax paid by a business varies between countries, although since
corporations are legal entities distinct from their owners and operators, they are
typically taxed as if they were people.
Personal disposable income
Disposable income, also known as disposable personal income (DPI), is the amount
of money that households have available for spending and saving after income taxes
have been accounted for.
Retained Earnings
A business generates earnings which can be positive (profits) or negative (losses).
While managing losses is a different ball game altogether, profits (or the positive
earnings) give a lot of room to the business owner(s) or the company management to
utilize the surplus money earned. The following options broadly cover all possibilities on
how the surplus money can be utilized:

Factor Income
is income derived from selling the services of factors of production. In the case of
labour, this means wages, plus the part of the incomes of the self-employed which is a
reward for their own labour.
Direct tax
is paid directly by an individual or organization to the imposing entity. A taxpayer, for
example, pays direct taxes to the government for different purposes, including real
property tax, personal property tax, income tax or taxes on assets.
GNI (Gross national Income)
is based on a similar principle to GNP. The World Bank
defines GNI as: ... GNP includes domestic residents earnings from goods and services
produced and sold abroad, and investments abroad. GNP does not include earnings by
foreign residents while inside the country
Net transger
In economics, a transfer payment (or government transfer or simply transfer) is a
redistribution of income and wealth (payment) made without goods or services being
received in return. These payments are considered to be non-exhaustive because they
do not directly absorb resources or create output.