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
Determine the profit maximizing price and quantity A firm has segmented its market into the following demand functions: P1 = 500 – 50Q     P2 = 500 – 20Q     with a cost fu

Why elasticity is important for economic analysis?  Elasticity is a significant concept in understanding the incidence of indirect taxation, marginal concepts as they relate to

What are the basic analytical frameworks of modern economics? The fundamental analytical framework of modern economics: The fundamental analytical framework for an econom

Withdrawing MRTP Restrictions: The restriction on the scrutiny of an investment proposal that it does not violate the provisions of MRTP Act was withdrawn. This freed big bus

Q. Explain about Banking Cycle? An economic cycle that results from cyclical changes in the attitudes of banks toward lending risk. When economic times are good, bankers become

write about the origin of sylos labini''s limit pricing model


The economy, however, is facing inflationary pressures. To deal with the macroeconomic problem, the government uses expansionary fiscal policy to decrease taxes and, as an indirect

Topic: Please choose a case study in water related area and analyse it from at least two angles (or more) by examining the technical side as well as the economical, social and poli