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Gross Domestic Product (GDP), which defines

production based on the geographical


location of production.

measures the total output produced within a
country's borders - whether produced by that
country's own firms or not.


GAWA DITO SA PILIPINAS
Gross National Product (GNP) is the market
value of all products and services produced in
one year by labor and property supplied by the
residents of a country.

measures the output generated by a country's
enterprises (whether physically located
domestically or abroad)


GAWA NG PILIPINO
EXPENDITURES METHOD
INDUSTRIAL-ORIGIN METHOD
INCOME METHOD
EXPENDITURES METHOD
C + G + I + (X M) = GDP
GNP = GDP + Net Factor Income From
Abroad

C = EXPENSES OF HOUSEHOLDS
G = GOVERNMENT EXPENDITURES
I = EXPENDITURES OF BUSINESS
FIRMS
(X-M) = EXPENDITURES OF THE
EXTERNAL SECTOR,
X = EXPORTING EXPENSES
M = IMPORTING EXPENSES
EXPENSES OF HOUSEHOLDS called
personal consumption expenditures. These
include durable consumer goods like cars,
television sets, and other home appliances;
non-durable consumer goods like food and
clothes; and expenses for services of lawyers,
doctors, etc.
GOVERNMENT EXPENDITURES are the
purchases of finished products and all
purchases on some factors of production
especially labor. Excluded on this are transfer
payments.
EXPENDITURES OF BUSINESS FIRMS
refers to the expenses for investments by the
business firms. Included here are all the final
purchase for machinery and equipment for the
business, construction of buildings and
changes in inventories.
NET FACTOR INCOME FROM ABROAD =
refers to the part of national income that comes
from the difference of the income of Filipinos
working abroad and foreign workers in the
Philippines.
INDUSTRIAL-ORIGIN METHOD
A+D+S=GDP

GNP=GDP + Net Factor Income
From Abroad
A = AGRICULTURE is composed of
the industries of farming, fisheries, and
forestry.
D = INDUSTRY includes mining,
manufacturing, construction,
electricity, gas and water.
S = SERVICE includes transportation
and communications, finance, real
state, and the private and public
services.
INCOME METHOD
W + R + T + P = NI
NI + (ITS) + DA = GNP
GDP = GNP - Net Factor Income
From Abroad
W WAGES of the workers
R RENT from land
T INTEREST from capital
P PROFITS of the entrepreneurs
NI NATIONAL INCOME
ITS (INDIRECT TAXES-
SUBSIDY),
DA DEPRECIATION
ALLOWANCE
W + R + T + P = NI

ITS (INDIRECT TAXES-
SUBSIDY), Subsidies are financial
assistance given by the
government to decrease the cost of
production of the business firms.

DA DEPRECIATION
ALLOWANCE are reserved costs
for the upgrade and maintenance
of capital goods.

EXPENDITURES METHOD

INDUSTRIAL ORIGIN
METHOD

INCOME METHOD
C
+ G
I
(X-M)
Agriculture
+ Industry
Service
Wage
+ Interest
Rent
Profit
GDP
+ net factor income from
abroad
GDP
+ net factor income from
abroad
NI
+ (indirect taxes- Subsidy)
+ DA
GNP
- (indirect taxes-
Subsidy)
- DA
GNP
- (indirect taxes-
Subsidy)
- DA
GNP
- net factor income from
abroad
NI NI GDP

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