Need help with attached questions.
I) A)Define what is meant by gross domestic product and explain how it is differ from 'net' domestic product , and gross national product ,B) explain and discuss the following four ways of looking at GDP: 1) output measure 2) input measure 3) uses of income measure 4) expenditure measure.
The gross domestic product is the total market value of goods and services produced by workers and capital within a country. It is a measure of the economic production of a country in financial capital terms over a period of time.
When the depreciation of fixed assets or inventories is subtracted from the gross domestic product we get the net national product. The net domestic product gives us the products that are available for consumption or adding to the country's wealth.
The output approach means that the output of all firms is added up to arrive at the gross domestic product. This approach is also called the product approach; however, even the services are included in the gross domestic product.
The input approach means that the inputs of all factors of production are added to arrive at the gross domestic product. However, intermediate inputs are subtracted.
The income measure to gross domestic product is to sum up all income earned. The gross domestic income should equal the gross domestic product. The purpose of using this approach is to find out the total factor income and identify the component of taxes less subsidies. The compensation of employees, surplus of incorporated businesses, and the surplus of unincorporated businesses can be examined separately.
The expenditure approach is to sum up all money used to buy things. The use of measuring expenditure is that it is a different approach to measuring production. Since, large sectors of ...
This answer provides you an excellent discussion on goods and services produced by workers