Macroeconomics ,,,,.docx

Rosela Gracia F. Lato ACBSUI BSBA – II (OM) FEB. 2, 2019 Gross domestic product Description 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 Description 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. Depreciation 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. Dividends 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 services. 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 valueadded 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, designerlabel 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.