Lesson 3 - Net Income PDF

NET INCOME  Learning Objectives I can identifying the methods for measuring the national product I can examine the national product (Gross National Product-Gross Domestic Product) as a measure of the capability of an economy I can analyze the importance of measuring national i...

NET INCOME  Learning Objectives I can identifying the methods for measuring the national product I can examine the national product (Gross National Product-Gross Domestic Product) as a measure of the capability of an economy I can analyze the importance of measuring national income in the economy National Income National income refers to the total monetary value of all goods and services produced by a country within a specific period (usually a year) and the income earned by its citizens, both domestically and internationally. National Income: GDP and GNP Gross Domestic Product GDP = C + G + I + (X-M) Personal Consumption Expenditure (C) ⚬ Household consumption Government Expenditure on Goods and Services (G) ⚬ Philippine Government is the biggest spender in the economy. Investment/Capital Formation (I) Net Export (X-M) = (Export - Import)  Gross National Income/Product GNP is the biggest national income account. It measures not only the domestic incomes earned by Filipinos but also incomes earned by Filipinos abroad. GNI/GNP = C + G + I + (X-M) + Net Factor Income From Abroad Gross National Product ITEM 1 Given data: Consumption (C) = ₱1.8 trillion Government Expenditure (G) = ₱2.3 trillion Investment (I) = ₱1.2 trillion Net Exports (X - M) = - ₱1.5 trillion NFIFA = ₱2.5 trillion ITEM 1 Given data: Consumption (C) = ₱1.8 trillion Government Expenditure (G) = ₱2.3 trillion Investment (I) = ₱1.2 trillion Net Exports (X - M) = - ₱1.5 trillion NFIFA = ₱2.5 trillion  1,800,000,000 +1,200,000,000 +2,300,000,000 -1,500,000,000 +2,500,000,000 GNI=₱6,300,000,000