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GDP per capita
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Gross domestic product at current market prices
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LC Econ NatIncome
LC Economics Measurement of National Income
| Term | Definition |
|---|---|
| GDP per capita | The level of output (income) per person in a country. |
| Gross domestic product at current market prices | The total output of goods and services produced in the economy by Irish and foreign individuals and companies |
| Gross national income at current market prices | Gross national product at current market prices plus EU subsidies minus EU taxes. |
| Gross national product at current market prices | Gross domestic product at current market prices plus net factor income from the rest of the world. |
| Incomes in kind | Incomes received in a non-monetary form. |
| Market-oriented economy | An economy where a high proportion of goods and services produced are paid for and recorded. |
| National income | The total income earned by the residents of a country in one year |
| Net factor income from the rest of the world | The income earned by Irish individuals and companies abroad less the income earned by foreign individuals and companies in Ireland. |
| Net national income at current market prices | Gross national income at current market prices minus depreciation. |
| Net national product at factor cost | Net national income at current market prices less national taxes plus national subsidies. |
| Net value added | The difference between the value of a firm's |
| Non-market economic activities | The goods and services produced in a country that are not recorded in the national accounts (also known as the 'black economy' |
| Transfer payments | Payments made to individuals |
| National Income has many uses: | indication of our standard of living / means of comparing the standard of living in different countries / assists the government in formulating economic policy / evaluate economic policy / EU Budget contribution or benefits: Be able to explain each. |
| National Income has many drawbacks (know 5) | ○ Population changes○Inflation/Deflation○ Employment/unemployment○Levels of social welfare ○Hidden Social costs○Distribution of National Income○Exclusion of Activities from ○Nature of goods produced○Government Services at cost price |
| To go from 'gross' to 'net' | subtract depreciation |
| To go from 'factor cost' to 'current market price' | add taxes and subtract subsidies. |
| To go from 'domestic' to 'national' | subtract net factor income from the rest of the world. |
| To go from 'product' to 'income' | add EU subsidies and subtract EU taxes. |
Created by:
MrFromholz
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