ROSS DOMESTIC PRODUC

ROSS NATIONAL PRODUC

ROSS DOMESTIC PRODUC

GAWA DITO SA
PILIPINAS
Gross Domestic
Product (GDP), which
defines DOMESTIC PRODUC
ROSS
production based on the geographical
location of production.
measures the total output produced
within a country's borders - whether
produced by that country's own firms

GROSS national PRODUCT

GAWA NG PILIPINO
Gross National Product (GNP) is the
market value
of all productsPRODUCT
and
GROSS
national
services produced in one year by labor
and property supplied by the residents
of a country.
measures the output generated by a
country's enterprises (whether
physically located domestically or

WAYS FOR COMPUTING FOR NATIONAL INCOME

EXPENDITURES METHOD
INDUSTRIAL-ORIGIN METHOD
INCOME METHOD

EXPENDITURES METHOD

C + G + I + (X M) = GDP
GNP = GDP + Net Factor Income From
Abroad

C = EXPENSES OF HOUSEHOLDS
G = GOVERNMENT EXPENDITURES
I = EXPENDITURES OF BUSINESS
FIRMS
(X-M) = EXPENDITURES OF THE
EXTERNAL SECTOR,
X = EXPORTING EXPENSES
M = IMPORTING EXPENSES

EXPENSES OF HOUSEHOLDS called

personal consumption
expenditures. These include durable
consumer goods like cars, television
sets, and other home appliances;
non-durable consumer goods like
food and clothes; and expenses for
services of lawyers, doctors, etc.

GOVERNMENT EXPENDITURES are

the purchases of finished products
and all purchases on some factors of
production especially labor. Excluded
on this are transfer payments.

EXPENDITURES OF BUSINESS FIRMS

refers to the expenses for
investments by the business firms.
Included here are all the final
purchase for machinery and
equipment for the business,
construction of buildings and
changes in inventories.

NET FACTOR INCOME FROM ABROAD

= refers to the part of national
income that comes from the
difference of the income of Filipinos
working abroad and foreign workers
in the Philippines.

INDUSTRIAL-ORIGIN METHOD
A+D+S=GDP
GNP=GDP + Net Factor Income
From Abroad

A = AGRICULTURE is
composed of the industries of
farming, fisheries, and forestry.
D = INDUSTRY includes
mining, manufacturing,
construction, electricity, gas
and
S =water.
SERVICE includes
transportation and
communications, finance, real
state, and the private and

INCOME METHOD
W + R + T + P = NI
NI + (ITS) + DA = GNP
GDP = GNP - Net Factor
Income From Abroad

W WAGES of the workers

R RENT from land
T INTEREST from capital
P PROFITS of the
entrepreneurs
NI NATIONAL INCOME
ITS (INDIRECT TAXESSUBSIDY),
DA DEPRECIATION
ALLOWANCE
W + R + T + P = NI


ITS (INDIRECT TAXESSUBSIDY), Subsidies are
financial assistance given by
the government to decrease
the cost of production of the
business firms.


DA DEPRECIATION
ALLOWANCE are reserved
costs for the upgrade and
maintenance of capital goods.

EXPENDITURES

INDUSTRIAL ORIGIN

METHOD
C
+

METHOD
Agriculture
+

net factor

income from abroad

Industry

Wage
+

Service

(X-M)
GDP
+

INCOME METHOD

Rent
Profit
NI

GDP
+

net factor

income from abroad

Interest

Subsidy)
+

GNP
(indirect taxesSubsidy)

Subsidy)

DA
NI

GNP
(indirect taxesDA
NI

(indirect taxes-

from

DA
GNP
net factor income
abroad
GDP