National income accounting, Microeconomics

National income accounting:

Final Goods: Final goods are goods and services which are being purchased for final use and not for resale or further processing or manufacturing.

Value Added: It is the extra worth that a firm or a producer adds to a product in the course of its production. If a gari processing firm purchases cassava for hundred thousand cedis and later turns it into gari which is sold or valued at hundred and fifty thousand cedis, then, the value added is fifty thousand cedis (i.e. 150,000 - 100,000 = 50,000).

Current Output: It refers to goods and services produced in the accounting period. This is so because under national income we are accounting for output within a defined time or accounting period say for 1st January 2000 to 31st December 2000.

Factor Cost: The net price, that is, the market price minus indirect taxes or plus subsidies, is the factor cost, which is the amount received by the factors of production in that productive activity.

Posted Date: 1/3/2013 12:08:32 AM | Location : United States

Related Discussions:- National income accounting, Assignment Help, Ask Question on National income accounting, Get Answer, Expert's Help, National income accounting Discussions

Write discussion on National income accounting
Your posts are moderated
Related Questions
Is Nigeria''s census accurate?

It is also known a sleadig indicators forecasting National Bureau of Economic Research of U. S.A has identified three types of indicate Leading indicators coincidental indicators a

using the basic Keynesian model answewr the following parts carefully using the relevant diagrams. what happens to the equilibrium level of GDP(Y) given the following: a) a reducti

A film studio in Hollywood produces movies according to the function q = F(K;L) = (2=100)K^0.5L^0.5 In the short run, capital (studios, gear) is xed at a level of 100. It costs $

What are the costs and difficulties of such an operation? The direct costs are administrative, cooperative and storage costs, whereas the societal costs include misallocation,

A monopolist''s demand curve is P=100-2q. find his MR function. at what price is MR zero

#• The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded. • The price of a pack of cigarettes increases by 10% and there is a 5% drop in the quan

Wage Differentials: Market structure alone does not account for all of the differences in wages and employment. Market wage differentials arise from various other sources, includin

related documents, photos,paper for permission from court etc.