ecodev

• Formulas


  • GNP = GNE = GNY = GNVA
• Expenditure Approach (Gross National Expenditures or GNE)


  1. GNP = GNE = C + I + G + (X - M) + NFIA

  2. NE = X - M

  3. X > M + NE
• I - Gross domestic investment

  I = RIC + DCE + Inv
• NI - Net Investment (Net of fixed assets)

  NI = I - CCA
• NFIA - Net factor income from abroad


  NFIA = Xy - Me
• Income Approach (Gross National Income or GNY)


  1. GNP = GNY = PY + GY + C + IBT + CCA

  2. NY or NI = PY + GY + C
• PY - Personal income


  PY = w + r + i
• GY - Government income

  GY = Taxes + Nontaxes (GOCC's)
• Value Added Approach (Gross National Value Added or GNVA)


  GNP = GNVA = VAA + VAI + VAS + NFIA
• GDP = GNP - (-NFIA)
• NY = GNP - IBT - CCA
• NY = PY + C + GY
• PDY - Personal disposable income

  PDY = PY - PYT
• Remember: GNP = GNE = GNY = GNVA
• Economics


  A social science which deals with the proper allocation and efficient use of available/scarce resources for the maximum satisfaction of unlimited human wants and needs
• Important terms in the study of economics

  • Microeconomics
  • Macroeconomics
  • Scarcity
  • Opportunity cost
  • Marginal Theory
• Economic Development


  The process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and objectives
• Economic Development


  • It is more than a jobs program, it's an investment in growing your economy and enhancing the prosperity and quality of life for all residents
  • It means different things to different people
• Economic Development (simple words)


  The process by which emerging economies become advanced economies, where countries with low living standards become nations with high living standards
• Michael Paul Todaro (Development Economist): 'Development is not purely an economic phenomenon but rather a multi-dimensional process involving reorganization and reorientation of entire economic AND social system. Development is process of improving the quality of all human lives with three equally important aspects.'
• Economic Growth


  An increase in the production of economic goods and services, compared from one period of time to another. It can be measured in nominal or real (adjusted for inflation) terms. Traditionally, aggregate economic growth is measured in terms of gross national product (GNP) or gross domestic product (GDP), although alternative metrics are sometimes used.
• C


  Household Consumption
• Cr


  Real consumption
• Co


  Autonomous consumption
• I


  Gross domestic investment
• I


  1. RIC

  2. DCE

  3. Inv D
• RIC


  Residential and Industrial construction
• DCE


  Durable capital equipment
• Inv D


  Changes in inventory
• G


  Government expenditure
• NI


  Net Investment (Net of fixed assets)
• NFIA


  Net factor income from abroad
• Xy


  Export income (OFW and Filipino businesses' income abroad)
• Me


  Import expenditures (foreigners' income in the Philippines)
• GY = Taxes + Nontaxes (GOCC’s)

              PY – Personal income

  w – wages or salary income

              r – rent income

              i – interest income

              GY - Government income

              CP – Corporate profits

              IBT – Indirect business taxes, like VAT

              CCA – Capital consumption allowance or Depreciation
• VAA – Value added by agricultural sector.

  VAI – Value added by industrial sector.

  VAS – Value added by service sector.