1. THE FLOW OF GOODS
AND SERVICES
Example of Economic Activity
At 7 a.m., Lenilyn takes a jeepney
to school and pays 14 pesos for her
fare. At lunch time she goes to the
canteen and pays 30 pesos for her
lunch. At merienda time she pays 15
pesos for cheese sticks and drinks. At
the end of the class, she pays another
14 pesos for the jeepney trip home.
3. INDICATOR OF A COUNTRY’S
AGGREGATE OUTPUT
Gross Domestic Product (GDP)
aggregate measure of total
economic production for a country
represent the market value of
all goods and during the period
measured services produced by the
economy
4. Market Value
refers to the current or most recently-qouted
price for a market-traded security
P x Q, (where P is the quantity and Q
is the quantity of the good produced)
Final Good
goods that are purchased not for
the purpose of resale or producing other
goods for further sale
5. Strengths
Considered the broadest indicator of
economic output and growth
Real GDP takes inflation into account,
allowing for comparisons against other
historical time period
Weakness
Data is not very timely
Revisions can change historical figures
measurably
6. total market value of the final goods
and services produced by a nation’s
economy during a specific period of
time
