measures of national income and output

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measures of national income and output

Post by madhavi on Thu Apr 29 2010, 16:24

A variety of measures of national income and output are used
in economics
to estimate total economic activity in a country or region, including gross domestic product (GDP), gross
national product (GNP), and net national income (NNI). All are specially
concerned with counting the total amount of goods and services produced
within some "boundary". The boundary may be defined climatologically,
or by citizenship; and limits on the type of activity also form part of
the conceptual boundary; for instance, these measures are for the most
part limited to counting goods and services that are exchanged for
money: production not for sale but for barter, for one's own personal
use, or for one's family, is largely left out of these measures,
although some attempts are made to include some of those kinds of
production by imputing monetary values to them.
As can be imagined, arriving at a figure for the total production of
goods and services in a large region like a country entails an enormous
amount of data-collection and calculation. Although some attempts were
made to estimate national incomes as long ago as the 17th century,the systematic keeping of national accounts, of which these figures are a part, only
began in the 1930s, in the United States and some European countries.
The impetus for that major statistical effort was the Great Depression
and the rise of Keynsian economics, which prescribed a greater role for
the government in managing an economy, and made it necessary for
governments to obtain accurate information so that their interventions
into the economy could proceed as much as possible from a basis of fact.
In order to count a good or service it is necessary to assign some
value to it. The value that all of the measures discussed here assign to
a good or service is its market value the price it fetches when
bought or sold. No attempt is made to estimate the actual usefulness of a
product its use-value assuming that to be any different from its
market value.dodge 3500 wheel bearing
global sourcing

madhavi
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