CAIIB-ABM (TOPIC: GDP CONCEPTS)
1. GDP(Gross Domestic Product): Its the total Market Value of all the final goods & services produced within the territorial boundary of a Country, using domestic resources during a given period of time, usually 1Year.
2. Gross National Income at Market Price = GDP at Market Price+Taxes less subsidies on Production & Imports (Net receivable from aboard + Compensation of Employees net receivable from aboard)+Rosesty Income (Net receivable from aboard).
3. GNP(Gross National Product)=GDP+Total Capital gains from Investment (-) Income earned by Foreign Nationals domestically.
4. According to the National Income Accounting there are 3 ways to comple GDP:
- Expenditure Wise
- Income Wise
- Product Wishe.
5. Expenditure Wise Method:
GDP=Consumption+Gross Investment+Govt. Rememeing + (Exports-Imports)
GDP = C+I+G(X-M)
- Consumption: This included Personal Expenditures pertaining to done, households.
- Gross Investment: Business Investment as capital which includes construction of a new time, purchase of Machinery & Equipments for a Factory, purchase of Software, expenditure on New houses. Buying Goods & Services but investments on Financial Products is not included as it falls.
- Govt. Spending: Its the sum of Govt. Expenditures of Final Goods & Services.
- Exports-Imports: Exports includes all Goods & Services produced for overseas consumptions & Imports includes any Goods or Services imported for consumption & it should be deducted to prevent from calculation Foreign Supply as domestic supply.
6. Income Approach: GDP from the income is the sum of the following Major Components:
- Compensation of Employees: It represents wages, salaries & other employee supplements.
- Property Income: It constitutes corporate profits, proprietors income, Interest & Rents.
- Production Taxes & Depreciation on Capital.
7. GDP at Market Price measures the value of output Market Prices after adjusting for the effect of Indirect Taxes & Subsides on the prices.
8. Market Price is the economic price for which a Good or Service is offered in the Market Place.
9. GDP at factor cost = GDP at Market Price-(Indirect taxes - Subsidies).
10. Product Approach in India getting GDP product wise colonis to 8 sectors.
11. Real GDP/GDP at Constant Price: It means the value of today's output at yesterday price.
Real GDP is calculated by tracking the volume/quantity of production after removing the influence of changing prices or inflation.
12. Normal GDP/GDP at Current Prices: It represents the total Money Value of Final Goods & Services produced in a given year.
Where the Values are expressed in terms of the Market Prices of each year.
13. Factors of Production are: Land, Labour, Capital & Entrepreneur..
1. GDP(Gross Domestic Product): Its the total Market Value of all the final goods & services produced within the territorial boundary of a Country, using domestic resources during a given period of time, usually 1Year.
2. Gross National Income at Market Price = GDP at Market Price+Taxes less subsidies on Production & Imports (Net receivable from aboard + Compensation of Employees net receivable from aboard)+Rosesty Income (Net receivable from aboard).
3. GNP(Gross National Product)=GDP+Total Capital gains from Investment (-) Income earned by Foreign Nationals domestically.
4. According to the National Income Accounting there are 3 ways to comple GDP:
- Expenditure Wise
- Income Wise
- Product Wishe.
5. Expenditure Wise Method:
GDP=Consumption+Gross Investment+Govt. Rememeing + (Exports-Imports)
GDP = C+I+G(X-M)
- Consumption: This included Personal Expenditures pertaining to done, households.
- Gross Investment: Business Investment as capital which includes construction of a new time, purchase of Machinery & Equipments for a Factory, purchase of Software, expenditure on New houses. Buying Goods & Services but investments on Financial Products is not included as it falls.
- Govt. Spending: Its the sum of Govt. Expenditures of Final Goods & Services.
- Exports-Imports: Exports includes all Goods & Services produced for overseas consumptions & Imports includes any Goods or Services imported for consumption & it should be deducted to prevent from calculation Foreign Supply as domestic supply.
6. Income Approach: GDP from the income is the sum of the following Major Components:
- Compensation of Employees: It represents wages, salaries & other employee supplements.
- Property Income: It constitutes corporate profits, proprietors income, Interest & Rents.
- Production Taxes & Depreciation on Capital.
7. GDP at Market Price measures the value of output Market Prices after adjusting for the effect of Indirect Taxes & Subsides on the prices.
8. Market Price is the economic price for which a Good or Service is offered in the Market Place.
9. GDP at factor cost = GDP at Market Price-(Indirect taxes - Subsidies).
10. Product Approach in India getting GDP product wise colonis to 8 sectors.
11. Real GDP/GDP at Constant Price: It means the value of today's output at yesterday price.
Real GDP is calculated by tracking the volume/quantity of production after removing the influence of changing prices or inflation.
12. Normal GDP/GDP at Current Prices: It represents the total Money Value of Final Goods & Services produced in a given year.
Where the Values are expressed in terms of the Market Prices of each year.
13. Factors of Production are: Land, Labour, Capital & Entrepreneur..
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