This document discusses circular flow of income and expenditure in different types of economies. It begins by describing the basic circular flow between households and businesses in a two-sector closed economy. It then expands on this by introducing the government sector, creating a three-sector closed economy model. Finally, it introduces an open, four-sector economy model that includes international trade between the domestic economy and the foreign sector. Key aspects like assumptions, flows of goods/services/income, and the overall circular nature of expenditures and incomes are described for each economy type.
national income, estimation of national income, factors not considering while estimating the national income, gdp , ndp, nnp, gnp, personal income, per capita income, disposable income,national income at factor cost, methods of estimating national income
all about national income gdp, management , sector models,methods to calculate gdp that you want to learn as a beginner.ppt from CABM students gbpuat, Pantnagar
All about national income that u need to know for beginners. various methods to calculate gdp,gnp etc
presented by students of College of Agribusiness Management, govind ballabh pant university of agriculture & technology.
The document summarizes the circular flow of income and expenditure in a four sector economy consisting of household, business, government, and foreign sectors. It describes the receipts and payments between each sector. For example, households receive factor income from businesses and pay taxes to the government. Businesses receive income from sales and exports and pay factor costs to households. The government collects taxes and makes transfer payments. The foreign sector receives payments for imports and makes payments for exports. An equilibrium equation balances aggregate demand and supply in the economy.
Macroeconomics examines aggregate economic measures for entire economies, such as total output, income, spending, employment and prices. It analyzes topics like economic growth, inflation, recession and the effects of fiscal and monetary policy. Microeconomics looks at individual agents and markets. Macroeconomics deals with economy-wide phenomena and seeks to understand how the whole economic system functions.
Concept of national income and comparison with pakistanAgamya Dixit
It discusses the various concepts of national income like GDP, GNP, circular flow of income , etc .. It also brings to light the data related to national income for past few years and the trends. It also presents a comparison with the national income trends of Pakistan.
National income is defined as the total value of goods and services produced in a country in a year. It includes incomes earned from labor, capital, land, and entrepreneurship during production. India's per capita income has been growing in recent years, reaching an estimated ₹135,050 in 2019-2020. National income statistics help understand an economy's performance and standard of living.
The document provides an outline for a course on national income. It covers key topics like measuring a nation's income, consumption, saving, investment, equilibrium in product and money markets, fiscal policy, business cycles, and growth models. It also describes the four sector economy consisting of households, private sectors, government, and foreign sectors. Circular flow of income between these sectors is illustrated. Important concepts like GDP, GNP, NDP, national income, and methods of measuring national income including product, income and expenditure methods are defined and explained in the document.
national income, estimation of national income, factors not considering while estimating the national income, gdp , ndp, nnp, gnp, personal income, per capita income, disposable income,national income at factor cost, methods of estimating national income
all about national income gdp, management , sector models,methods to calculate gdp that you want to learn as a beginner.ppt from CABM students gbpuat, Pantnagar
All about national income that u need to know for beginners. various methods to calculate gdp,gnp etc
presented by students of College of Agribusiness Management, govind ballabh pant university of agriculture & technology.
The document summarizes the circular flow of income and expenditure in a four sector economy consisting of household, business, government, and foreign sectors. It describes the receipts and payments between each sector. For example, households receive factor income from businesses and pay taxes to the government. Businesses receive income from sales and exports and pay factor costs to households. The government collects taxes and makes transfer payments. The foreign sector receives payments for imports and makes payments for exports. An equilibrium equation balances aggregate demand and supply in the economy.
Macroeconomics examines aggregate economic measures for entire economies, such as total output, income, spending, employment and prices. It analyzes topics like economic growth, inflation, recession and the effects of fiscal and monetary policy. Microeconomics looks at individual agents and markets. Macroeconomics deals with economy-wide phenomena and seeks to understand how the whole economic system functions.
Concept of national income and comparison with pakistanAgamya Dixit
It discusses the various concepts of national income like GDP, GNP, circular flow of income , etc .. It also brings to light the data related to national income for past few years and the trends. It also presents a comparison with the national income trends of Pakistan.
National income is defined as the total value of goods and services produced in a country in a year. It includes incomes earned from labor, capital, land, and entrepreneurship during production. India's per capita income has been growing in recent years, reaching an estimated ₹135,050 in 2019-2020. National income statistics help understand an economy's performance and standard of living.
The document provides an outline for a course on national income. It covers key topics like measuring a nation's income, consumption, saving, investment, equilibrium in product and money markets, fiscal policy, business cycles, and growth models. It also describes the four sector economy consisting of households, private sectors, government, and foreign sectors. Circular flow of income between these sectors is illustrated. Important concepts like GDP, GNP, NDP, national income, and methods of measuring national income including product, income and expenditure methods are defined and explained in the document.
The document provides an outline for a course on national income. It covers key topics like measuring a nation's income, consumption, saving, investment, equilibrium in product and money markets, fiscal policy, business cycles, and growth models. It also describes the four sector economy consisting of households, private sectors, government, and foreign sectors. Circular flow of income between these sectors is illustrated. Methods for calculating GDP like product, income, and expenditure are summarized. Key concepts like GNP, NNP, personal and disposable income are also briefly explained.
This document discusses key concepts related to measuring national income, including:
- National income measures the total value of goods and services produced within an economy over a period of time. It is important for examining economic growth, living standards, and income inequality.
- Gross National Product (GNP) and Gross Domestic Product (GDP) are the main measures used, differing based on whether production is by a country's citizens or within its domestic territory.
- National income can be measured using the income, output, and expenditure approaches, which should produce equal totals. Limitations include exclusion of non-market activities and difficulties with price adjustments over time and between countries.
This document discusses key concepts related to measuring national income, including:
- Gross National Product (GNP) and Gross Domestic Product (GDP) measure the total value of goods and services produced over a period of time.
- GDP can be measured using the income, expenditure, and output approaches.
- National income statistics are useful but have limitations as they exclude non-market activities and may overstate or understate welfare.
- Other related concepts include inflation, price indices, real vs nominal values, and unemployment rates.
The document describes the circular flow of income and expenditure between four main sectors in an economy: the household sector, business sector, government sector, and foreign sector. It outlines the receipts and payments for each sector. The household sector receives income from the business sector and pays taxes and saves. The business sector receives factor payments and pays wages. The government collects taxes and makes transfer payments. The foreign sector receives exports and pays for imports. The capital market coordinates savings and investment between sectors.
There are three main measures of a nation's income:
1. Total value of goods and services produced
2. Total income received by households and businesses
3. Total spending by households, businesses, government, and foreign purchasers
National income is measured at both current and constant prices to allow for comparisons over time after adjusting for inflation. GDP and GNP are the most widely used measures of national income.
Here are the steps to calculate the level of GDP using the data provided:
Consumption (C) = £800bn
Government spending (G) = £300bn
Gross capital formation (I) = £250bn
Exports (X) = £400bn
Imports (M) = £350bn
Using the expenditure method formula:
GDP = C + I + G + (X - M)
= £800bn + £250bn + £300bn + (£400bn - £350bn)
= £800bn + £250bn + £300bn + £50bn
= £1400bn
Therefore, the level of GDP using the data provided
National income measures the total value of goods and services produced in an economy over a period of time. It is important for economists to measure national income to assess economic growth, changes in living standards, and income inequality. National income can be measured using the expenditure approach, income approach, and value-added approach. The expenditure approach defines GDP as the total final expenditures by consumers, investors, the government, and net exports. The income approach defines GDP as the sum of all incomes received by producing factors. The value-added approach defines GDP as the sum of the value added from all sectors of the economy.
The document discusses the circular flow of income model and its key components. It describes the five sectors - households, firms, government, financial institutions, and foreign - and the flows between them. It explains how savings, taxes, and imports are leakages that reduce income circulating in the economy, and how investment, government spending, and exports are injections that increase income circulating in the economy. Equilibrium occurs when total leakages equal total injections.
The document discusses various methods for calculating and measuring national income and gross domestic product (GDP) of a country. It provides definitions and formulas for calculating gross national product (GNP), gross domestic product (GDP), net national product (NNP). It also discusses the expenditure approach and income approach to measuring GDP and how GDP relates to a country's overall economic activity and welfare.
National income measures the total value of goods and services produced within an economy over a period of time without duplication. It is important for economists to measure national income to analyze economic growth, standard of living, and income inequality. National income can be measured using the product method, income method, or expenditure method. Each method involves estimating the total GDP, GNP, or NNP through summing the value of final goods/services, total income, or total expenditures respectively in an economy. There are challenges to accurately measuring national income such as avoiding double counting, accounting for transfer payments, and calculating depreciation. National income statistics are used for economic policy formulation, studying economic structure, and comparing economic welfare across countries.
The document discusses several key concepts in national income accounting:
1) GDP and GNP measure the aggregate output of final goods and services in an economy or produced domestically after accounting for international transactions.
2) Value added method avoids double counting by adding the value contributed at each stage of production.
3) Goods and services are evaluated at market prices to aggregate different types of output.
4) Stock variables measure levels at a point in time, while flow variables measure changes over a period of time like GDP.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
The document provides an outline for a course on national income. It covers key topics like measuring a nation's income, consumption, saving, investment, equilibrium in product and money markets, fiscal policy, business cycles, and growth models. It also describes the four sector economy consisting of households, private sectors, government, and foreign sectors. Circular flow of income between these sectors is illustrated. Methods for calculating GDP like product, income, and expenditure are summarized. Key concepts like GNP, NNP, personal and disposable income are also briefly explained.
This document discusses key concepts related to measuring national income, including:
- National income measures the total value of goods and services produced within an economy over a period of time. It is important for examining economic growth, living standards, and income inequality.
- Gross National Product (GNP) and Gross Domestic Product (GDP) are the main measures used, differing based on whether production is by a country's citizens or within its domestic territory.
- National income can be measured using the income, output, and expenditure approaches, which should produce equal totals. Limitations include exclusion of non-market activities and difficulties with price adjustments over time and between countries.
This document discusses key concepts related to measuring national income, including:
- Gross National Product (GNP) and Gross Domestic Product (GDP) measure the total value of goods and services produced over a period of time.
- GDP can be measured using the income, expenditure, and output approaches.
- National income statistics are useful but have limitations as they exclude non-market activities and may overstate or understate welfare.
- Other related concepts include inflation, price indices, real vs nominal values, and unemployment rates.
The document describes the circular flow of income and expenditure between four main sectors in an economy: the household sector, business sector, government sector, and foreign sector. It outlines the receipts and payments for each sector. The household sector receives income from the business sector and pays taxes and saves. The business sector receives factor payments and pays wages. The government collects taxes and makes transfer payments. The foreign sector receives exports and pays for imports. The capital market coordinates savings and investment between sectors.
There are three main measures of a nation's income:
1. Total value of goods and services produced
2. Total income received by households and businesses
3. Total spending by households, businesses, government, and foreign purchasers
National income is measured at both current and constant prices to allow for comparisons over time after adjusting for inflation. GDP and GNP are the most widely used measures of national income.
Here are the steps to calculate the level of GDP using the data provided:
Consumption (C) = £800bn
Government spending (G) = £300bn
Gross capital formation (I) = £250bn
Exports (X) = £400bn
Imports (M) = £350bn
Using the expenditure method formula:
GDP = C + I + G + (X - M)
= £800bn + £250bn + £300bn + (£400bn - £350bn)
= £800bn + £250bn + £300bn + £50bn
= £1400bn
Therefore, the level of GDP using the data provided
National income measures the total value of goods and services produced in an economy over a period of time. It is important for economists to measure national income to assess economic growth, changes in living standards, and income inequality. National income can be measured using the expenditure approach, income approach, and value-added approach. The expenditure approach defines GDP as the total final expenditures by consumers, investors, the government, and net exports. The income approach defines GDP as the sum of all incomes received by producing factors. The value-added approach defines GDP as the sum of the value added from all sectors of the economy.
The document discusses the circular flow of income model and its key components. It describes the five sectors - households, firms, government, financial institutions, and foreign - and the flows between them. It explains how savings, taxes, and imports are leakages that reduce income circulating in the economy, and how investment, government spending, and exports are injections that increase income circulating in the economy. Equilibrium occurs when total leakages equal total injections.
The document discusses various methods for calculating and measuring national income and gross domestic product (GDP) of a country. It provides definitions and formulas for calculating gross national product (GNP), gross domestic product (GDP), net national product (NNP). It also discusses the expenditure approach and income approach to measuring GDP and how GDP relates to a country's overall economic activity and welfare.
National income measures the total value of goods and services produced within an economy over a period of time without duplication. It is important for economists to measure national income to analyze economic growth, standard of living, and income inequality. National income can be measured using the product method, income method, or expenditure method. Each method involves estimating the total GDP, GNP, or NNP through summing the value of final goods/services, total income, or total expenditures respectively in an economy. There are challenges to accurately measuring national income such as avoiding double counting, accounting for transfer payments, and calculating depreciation. National income statistics are used for economic policy formulation, studying economic structure, and comparing economic welfare across countries.
The document discusses several key concepts in national income accounting:
1) GDP and GNP measure the aggregate output of final goods and services in an economy or produced domestically after accounting for international transactions.
2) Value added method avoids double counting by adding the value contributed at each stage of production.
3) Goods and services are evaluated at market prices to aggregate different types of output.
4) Stock variables measure levels at a point in time, while flow variables measure changes over a period of time like GDP.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
1. National Income Accounting:
Circular flow of income and expenditure
Economy represents the interrelationship between production, consumption and distribution
of goods and services. Economy shows the aggregation of all economic activities. Goods and
services are exchanged from one sector to another sector in an economy. There is flow of
money in opposite direction of flow of goods and services. Household sector provides factors of
production to the business sector whereas business sector provides goods and services to the
household sector. Household sector earn income from factor of production and expenses to
buy goods and services. Business sector earn income from goods and services and expenses to
buy factors of production. Thus, there is circular flow of income and expenditure in an
economy.
The circular flow of income and expenditure refers to the process whereby the national income
and expenditure of an economy flow in a circular manner continuously through time.
Circular flow of income and expenditure in a two sector economy
There is household and business sector in a two sector economy. There is no government and
foreign sector. It is not possible in real world. But this hypothetical economy gives the simple
ways to understanding the circular flow of income and expenditure. It is also known as two
sector closed economy. Household sector provides factors of production to the business sector
whereas business sector provides goods and services to the household sector. Household
sector earn income from factor of production and expenses to buy goods and services. Business
sector earn income from goods and services and expenses to buy factors of production.
Assumptions
i. There are only two sectors in an economy, household and business sector.
ii. No government and no foreign trade.
iii. All income should be spent
iv. All factors of production are taken from household to business sector.
v. All goods and services are taken from business to household sector.
2. Factor payments
Wages, Interest, Rent and Profit
HouseholdSector Production Sector
Services of land Labor, Capital etc.
Goods and Services
Price of Goods and Services
Circular Flow of Income and Expenditure in Two Sector Economy
Financial Sector
Saving Investment
The figure shows the circular flow of income and expenditure in a two sector economy. The
upper part of figure shows that the flow of income towards household sector due to the flow of
factors of production to business sector. Business sector expenses money to buy factors of
production. The lower part of figure shows that the flow of income toward the business sector
by selling goods and services to household sector. The household sector expenses money to
buy goods and services. The arrowheads show the flow of goods and services, income and
expenditure in the economy.
Circular flow of income and expenditure in three sector economy
Three sector of economy consist of household sector, business sector and government sector.
There is no foreign sector. This is also called three sector closed economy. The government
influences the level of economic activities in various ways; fiscal policy, monetary policy,
industrial policy, labour policy, price policy etc. This sector is more realistic than two sector
economy.
Assumptions
i. There are three sectors in the economy, household, business and government sector.
ii. Government intervention.
iii. Government imposes the tax.
iv. Government provides subsides to both household sector and business sector.
v. Household sector pay direct tax to government sector.
3. vi. Business sector pay direct tax and indirect tax to government sector.
vii. The economy is closed.
Production
Sector
Household
Sector
Government
Sector
Factor Services
Goods and Services
Factor Payments
Price of Goods and Services
Direct Income Tax
Wagessalaries and
Transferpayments
Direct and
IndirectTaxes
GovernmentPurchases
and Subsidies
Circular Flow of Income and Expenditure in three Sector Economy
The figure shows the circular flow of income and expenditure in three sector economy. The
circular flow of income and expenditure between household sector and business sector is
shown in lower part and upper part of the figure which is same as two sector economy. Upper
part of figure shows the income and expenditure of government sector in an economy.
Government sector purchases goods and services produced by business sector and imposed
direct tax and indirect tax. Government sector also provides subsidies to business sector.
Similarly, government imposed direct tax to household sector and provides wages, salaries and
transfer payments to household sectors.
Circular flow of income and expenditure in a four sector economy
Four sector economies include household, business, government and foreign sector. This is also
known as open economy. Foreign sector consist net export. Net export is the difference
between export and import.
Assumptions
i. Four sector includes household, business, government and foreign sector.
ii. No restriction of export and import.
iii. Competitive both internal and external markets.
4. iv. Well managed financial market.
v. Minimum government intervention
vi. Households export only labour and capital.
vii. Business firms export and import only goods and services.
Production
Sector
Household
Sector
Government
Sector
Factor Services
Goods and Services
Factor Payments
Price of Goods and Services
Direct Income Tax
Wagessalaries and
Transferpayments
Direct and
IndirectTaxes
GovernmentPurchases
and Subsidies
Circular Flow of Income and Expenditure in Four Sector Economy
Foreign
Sector
Foreign Remittance
Export of capital
and manpower
Receiptsfrom exports
Paymentsto Imports
The figure shows circular flow of income and expenditure in a four sector economy. The circular
flow between household, business and government sector is same as three sector economy.
The lower part of figure shows the circular flow of income and expenditure between foreign
sector and other sectors. Foreign sector consists export and import. Exports are an injection or
inflows in to the economy. They create income for domestic firms. On the other hand imports
are leakages from the circular flow.
The household sector buys goods imported from the abroad and makes payment for them
which is a outflows of income from circular flow. The household sector receives payment
(remittance) from the foreign sector for the export of capital and manpower.
The business sector exports goods to foreign countries and its receipts are an injection in the
circular flow. On the other hand, the business sector makes payments to the foreign sector
form import of capital goods, raw materials and other goods and services from abroad. They
are leakages from the circular flow.
Like the business sector, the government also receives payments from the foreign countries in
the form of subsidies, tourism, etc, they are injections. On the other hand the leakages are
payments made for the purchase of goods and services to foreigners.
5. The arrowhead shows the outflow and inflows of income and expenditure in four sector
economy.
National income accounting
It is a systematic record of aggregate economic activities of a country in the specific period of
time normally one year.
Importance/Usefulness
i. It provides a snapshoot picture of the economy which shows the overall status of the
economy.
ii. It shows the sectoral contribution to the economy.
iii. It works as the databank of the economic activities which can be used for policy making
purpose and academic research.
iv. It helps to make the international comparison of the domestic economy.
v. It gives the information of inflationary and deflationary gap.
National Income of an economy is the total market value of all final goods and services
produced in the economy over a certain period of time (normally one year).
National income is the sum of the income of all individuals in an economy in a given time
period.
National income is the aggregate earnings of the domestic factors of production in the specific
period.
National Product: It is the unduplicated market value of final goods and service produced by
domestic factors of production within one year.
Concepts of NIA:
Gross Domestic Product (GDP): Aggregate monetary value of final goods and services produced
within the country no matter who produces in a specific period of time (normally one year). It
only measures the final goods and services that are available in the market. So, It avoids double
counting.
It helps to know internal production capacity of economy. It helps to make comparison
between the two economies. It is computed in order to identify the performance of an
economy.
GDP = P1Q1 + P2Q2 + ...... + PnQn
Pi = Price of final product
Qi = Quantity of final product
GDP = ∑ Q
𝑛
𝑖=1 iPi
6. Pi = Price of ith commodity for final consumption
Qi = Quantity of ith commodity for final consumption
GDP = C + I + G + (X - M)
Where, C = Consumption expenditure
I = Total private investment
G = Government expenditure
( X - M) = Net export of goods and services.
Concept of GDP:
i) GDP at market price (GDPMP) :
If GDP of an economy is computed in terms of current market price then it is called GDP at
market price.
So,
GDPMP = ∑ Q
𝑛
𝑖=1 iPi
Pi = Current market Price of ith commodity
Qi = Quantity of ith commodity
GDP at market price is not practicable to compare GDP of two different years. It is because the
value of GDP may increase without increasing in volume of goods and services but increasing in
price level only.
ii) GDP at constant price (GDPCP):
If GDP is computed by considering price of the product in base year then it is called GDP at
constant price.
GDPCP = ∑ Q
𝑛
𝑖=1 iPi
Pi = Price of ith commodity during base year
Qi = Quantity of ith commodity
iii) GDP at Factor cost (GDPFC):
Gross domestic product at factor cost consists of income earned by a factor of production,
which is used in the production process.
GDP at FC = GDP ar MP - Net indirect taxes
Net Domestic Product (NDP):
7. NDP is the residual part of GDP after deducting depreciation. There exists wear and tear of the
machineries and other fixed factor of production while producing goods and services during a
year. Once we deduct such depreciation of capital during one year from GDP then we get NDP.
NDP = GDP - depreciation
NDPMP = GDPMP - depreciation
NDPFC = GDPFC - depreciation
NDPFC = NDPMP - Net indirect taxes
Net indirect taxes = Indirect taxes - Subsidies
Depreciation is the consumption of fixed capital or capital consumption allowance. It is also the
value of the capital that wears out.
Gross National Product (GNP):
It is aggregate monetary value of final goods and services produced by the domestic factors of
production no matter wherever they produce (inside or abroad) in a year.
GNP = GDP + earning by domestic factors of production from abroad - payments to foreign
factors of production
GNP = GDP + Net factors income from abroad (NFIA)
If GNP of an economy is computed in terms of current market price them it is called GNP at
market price.
If GNP is computed by considering price of the product in base year then it is called GNP at
constant price.
Gross National product at factor cost consists of income earned by a factor of production,
which is used in the production process.
GNPMP = GDPMP + NFIA
GNPFC = GDPFC + NFIA
GNPFC = GNPMP - Net indirect taxes
Net indirect taxes = Indirect taxes - Subsidies
Differences between GDP and GNP
i. GDP is the aggregate monetary value of final goods and services that is produced within the
country no matter who produces in a specific period of time whereas the GNP is the aggregate
monetary value of final goods and services produced by the domestic factors of production no
matter wherever they produce (inside or abroad) in a specific period.
ii. GDP measures the internal production capacity of the economy whereas GNP measures the
external dependency of the economy.
iii. GDP does not include NFIA whereas GNP includes NFIA.
iv. It is believed that GDP is a conventional indicator of NIA than GNP.
8. v. GDP is a narrow concept whereas the GNP is a boarder concept.
Net National Product (NNP):
NNP is the GNP with the cut off depreciation of capitals. There exists wear and tear of the
machineries and other fixed factor of production while producing goods and services during a
year. Once we deduct such depreciation of capital during one year from GNP then we get NNP.
NNP = GNP - depreciation
NNPMP = GNPMP - depreciation
NNPFC = NNPMP - Net indirect taxes
NNPFC = NDPFC + NFIA
National income:
It is the aggregate earnings of the domestic factor of production in the specific period of time.
NI = NNPFC
NI = NNP - indirect taxes + subsidies
NI = wages + rent + interest + profit
Personal income:
Personal income can be defined as the sum of all kinds of income received by the individuals
from all possible sources before payment of direct taxes during a year.
PI = NI - Undistributed profit - Corporate income taxes - Social security contribution + transfer
payments
Disposable Personal Income:
Disposable income is that part of the personal income which is ready to expenses. It refers to
the purchasing power of the individual or household. The total income received by all
individuals and households of a country from all possible sources after payment of direct taxes
is called disposable income.
DPI = PI - Direct tax (personal tax)
DPI = C + S
Personal Saving = DPI - personal consumption expenditure
Per Capital Income (PCI):
It is the average income of the peoples of a country in a particular year. It is the national
income divided by total population by country within a particular year.
9. PCI = NI/ Total population
Nominal GDP:
It is defined as the GDP evaluated at current market price.
Real GDP:
It is defined as the GDP evaluated at the market prices of any base year.
GDP deflator:
GDP deflator measures relative changes in current level prices in comparison to the level of
prices in the base year.
GDP deflator = Nominal GDP/Real GDP X 100
Rate of inflation:
Inflation rate is the ratio between change in deflator and previous GDP deflator.
Rate of inflation = change in GDP deflator / previous GDP deflator X 100
= Current GDP deflator - previous GDP deflator / Previous GDP deflator X 100
Measurement of National Income:
Production of goods and services gives rise to income, income gives rise to demand for goods
and services, demand gives rise to expenditure, and expenditure gives rise to further
production. Thus, there is circular flow of production, income and expenditure. Based on these
three related flows, national income can be measured by three methods. Product method,
income method and expenditure method which are explained below:
Product Method:
Product method measures national income at the phase of production in the circular flow.
Under this method, there are two approaches to the estimation of national income: i) final
product approach & ii) value added approach.
Final Product Method:
10. In the final product method, national income is estimated by finding the market value of all
final goods and services produced in an economy in a year. The various steps to the estimation
or calculation of national income according to this method are as follows:
GDP at MP = Market value of all final goods and services in the country
= P1Q1 + P2Q2 + ....... + PnQn
GNP at MP = GDP at MP + NFIA
NNP at MP = GNP at MP - depreciation
NI = NNP at FC = GNP at MP - Net indirect tax
Value added Method:
In this method the whole economy is classified into different sectors and the value added in
each sector is calculated. The value added means the difference between selling price and cost
of production or cost of intermediate goods.
i.e
Value added = sales value - cost of intermediate goods
Then we add all the value addition from each sector which gives the value of GDP.
GDP = V1 + V2 + ...... + Vn
Net value added is calculated by subtracting depreciation from gross value added.
Net value added = Gross value added - depreciation
NDP at FC = Sum of Net value added in all sectors
NI = NNP at FC = NDP at FC + NFIA
Income Method:
In this method or approach, the economic activities are measured from the income side.
Income means the earnings of the factors of production. So, the total income is classified into
following categories
i. Wages, salaries and other compensation to labour or labour's income (W).
W = Wages & salaries + Labour's contribution to social security + bonus + money value of other
facilities
ii.Rent (R): Nepalese rental income; land, building, factory etc.
iii. Interest (I): Interests received from the capitals are included in the national income.
11. iv. Profits ( P) : It includes dividends, profit tax and undistributed profits.
P = Dividend + Undistributed profit + corporate income tax
v. Mixed income and income from self-employment (M): Income earned by self employed
persons and profit of small business or sole proprietorship or household industries is included
in national income.
vi. Net indirect tax (NIT): It is the indirect tax less subsidies.
NIT = indirect tax - subsidies
vii. Net factor income from abroad (NFIA) : It is also included in the national income.
viii. Depreciation (D): The depreciation amount is deducted from gross income to get net
income.
NDP at FC = W + R + I + P + M
NI = NNP at FC = NDP at FC + NFIA
Also,
GDP at MP = W + R + I + P + M + D + NIT
GNP at MP = GDP at MP + NFIA
NNP at MP = GNP at MP - D
NI = NNP at FC = NNP at MP - NIT
Expenditure Method:
We can measure every economic activity from the perspective of expenditure. Since, every
economic activity is related with some expenditure we broadly classify the whole expenditure
in the economy in to following 4 categories.
i. Consumption expenditure made by household (C):
It includes the total expenditure made by the household which can be the expenditure on
durables, non-durables and services of all kinds.
ii. Expenditure made by business sector (I):
It includes the expenditure made by business sector on capital goods. The capital goods can be
divided into machinery and equipment, buildings and inventory investment. It includes
residential investment, non-residential investment and change in stock.
I = residential investment + non-residential investment + change in stock
In another way, it also as
I = Net fixed capital formation + depreciation + change in stock
Change in stock (Change in inventories) = closing stock - opening stock
iii. Government expenditure (G): It includes all the expenditure made by government on goods
and services in the year. It includes government consumption expenditure and government
investment expenditure.
12. G = government consumption expenditure + government investment expenditure
iv. Net export (X-M):
Since GDP measures the value of domestic product only the exports are added while imports
are to be subtracted to get the value of products produced within the country.
By adding all the components we get value of GDP.
GDP at MP = C + I + G + (X-M)
GNP at MP = GDP at MP + NFIA
NNP at MP = GNP at MP - depreciation
NI = NNP at FC = NNP at MP - Net indirect tax
Limitation/Problems/Difficulties in measurement of national income
i. Problem of double counting: Double counting is a major problem in the calculation of national
income. It refers to a commodity being included to the calculation of national income more
than once. To solve this problem, only the value of final goods and services should be
considered.
ii. Illegal income: Income earned through illegal activities (such as gambling, smuggling etc) is
not included in national income. By excluding such activities national income is underestimated.
iii. Existence of non-monetized sector: Existence of non-monetized sector poses another
difficulty in the way of national income calculation. All goods are not come to the market for
sale. Thus, it is difficult to include all goods and services in national income accounting.
iv. Non - availability of reliable data: National income measurement requires correct and
reliable data. But it is very difficult to get reliable data in developing countries and developed
countries also.
v. Lack of skilled manpower: National income measurement requires skilled manpower. But in
developing countries there is lack of skilled manpower.
vi. Complication of calculation of depreciation: Depreciation is deducted from Gross National
product to get the net national product. But, depreciation valuation involves statistical
difficulties like the age composition of the capital stock, year to year changes in the price of
capital goods since when they were purchased.
vii. Change in value of money: National income is measured in monetary terms. The change in
value of money creates the problem to calculate national income because national income
changes even without change in output.
Formula
1. GDP at MP = P1Q1 + P2Q2 + ...... + PnQn
2. GDP at MP = C + I + G + (X - M)
3. GDP at FC = GDP at MP - NIT
4. NIT = Indirect tax - subsidies
13. 5. NDP at MP = GDP at MP - depreciation
6. NDP at FC = NDP at MP - NIT
7. GNP at MP = GDP at MP + NFIA
8. NFIA = Earnings of domestic factors of production from abroad - payment to foreign sectors
9. GNP at FC = GNP at MP - NIT
10. NNP at MP = GNP at MP - depreciation
11. NNP at FC = NNP at MP - NIT
12. NI = NNP at FC
13. PI = NI - undistributed profit (Retained earnings) - social security contribution - corporate
income tax + transfer payment
14. DPI = PI - direct taxes (Personal taxes) OR DPI = C + S
15. Per Capita Income = NI/total population
16. GDP deflator = Nominal GDP/Real GDP X 100
17. Rate of inflation = Change in GDP deflator/previous deflator X 100
18. Value added = Value of output - cost of intermediaries (purchases)
19. Value of output = Sales + Change in stock
20. GDP at MP = sum of value added
21. Net value added = value added - depreciation
22. NDP at FC = Sum of net value added
23. NDP at FC = W + R + I + P + M
24. GDP at MP = W + R + I + P + M + depreciation + Net indirect tax
25. W = wages & salaries + labor's contribution to security + bonus + money value of other
facility
26. P = Dividend + Undistributed profit + corporate income tax
27. I = Net fixed capital formation + depreciation + Change in stock
28. Change in stock = closing stock - opening stock
29. G = Government consumption expenditure + Government investment expenditure
30. Operating Surplus = Rent + Profit + Interest + Royalty
31. Value of output in government sector = value of service sold + value of service supplied