MEASURING THE

ECONOMY & ECONOMICS Tr. Abegail Cabrera

AS AN APPLIED SCIENCE
GROSS NATIONAL
PRODUCT (GNP)
The total money value of all final goods and
services produced by the residents of a country in
one year period.
We should remember the following aspects about GNP.

i. GNP is a flow concept

ii. GNP measures final output
iii.GNP is output produced by the citizens of a
country
GNP EQUATION:
EXPENDITURE APPROACH

C – household and individual consumption

I – investments
G – government expenditures
X – exports
M - imports
GROSS NATIONAL PRODUCT
(GDP)
The total market value at current prices of all
final goods and services produced within a year by
the factors of production located within a country.
FORMULA FOR GDP:

NFIFA – Net Foreign Income From Abroad

ECONOMICS AS AN APPLIED
SCIENCE
It is the study of economics in relation to real
world situations. It is the application of economic
principles and theories to real situations, and
trying to predict what the outcomes might be.
THE PHILIPPINES’ BASIC
ECONOMIC PROBLEMS
Poverty
Unemployment
Booming population growth
LEE KUAN YEW (1923-2015)
Lee Kuan Yew was the prime minister of Singapore
from 1959 to 1990, making him the longest-serving
PM in history. During his long rule, Singapore
became the most prosperous nation in Southeast
Asia.
He is an economic icon
An example of how leader of a previously
undeveloped country can lead to overcome its
country’s basic economic problems and move
toward economic growth.