1. National Accounting
06/04/2019
Dr. Amr Nazieh

2. Ch 1: The nature of the national accounting
Some basic definitions
06/04/2019
Dr. Amr Nazieh

3. Consumption
is an activity in which institutional units use up goods or services; consumption can be either intermediate or final.
06/04/2019
Dr. Amr Nazieh

4. Consumption good or service
is one that is used (without further transformation in production) by households, and government units for the direct satisfaction of individual needs or wants or the collective needs of members of the community.
06/04/2019
Dr. Amr Nazieh

5. Consumption of fixed capital
represents the reduction in the value of the fixed assets used in production during the accounting period resulting from physical deterioration, normal obsolescence or normal accidental damage.
06/04/2019
Dr. Amr Nazieh

6. Final consumption
consists of goods and services used up by individual households or the community to satisfy their individual or collective needs or wants.
06/04/2019
Dr. Amr Nazieh

7. Final consumption expenditure of government
Government final consumption expenditure consists of expenditure, including imputed expenditure, incurred by general government on both individual consumption goods and services and collective consumption services.
06/04/2019
Dr. Amr Nazieh

8. Final consumption expenditure of households
Household final consumption expenditure consists of the expenditure, including imputed expenditure, incurred by resident households on individual consumption goods and services, including those sold at prices that are not economically significant.
06/04/2019
Dr. Amr Nazieh

9. Final expenditure
Final expenditure consists of final consumption expenditure and gross fixed capital formation.
06/04/2019
Dr. Amr Nazieh

10. Ch 1: The nature of the national accounting
Gross Domestic Product Gross domestic product (GDP) measures the total output of goods and services for final use occurring within the domestic territory of a given country, regardless of the allocation to domestic and foreign claims.
06/04/2019
Dr. Amr Nazieh

11. Ch 1: The nature of the national accounting
Gross domestic product at purchaser values (market prices) is the sum of gross value added by all resident and nonresident producers in the economy plus any taxes and minus any subsidies not included in the value of the products.
06/04/2019
Dr. Amr Nazieh

12. Ch 1: The nature of the national accounting
It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.
06/04/2019
Dr. Amr Nazieh

13. Ch 1: The nature of the national accounting
Value added is the net output of an industry after adding up all outputs and subtracting intermediate inputs.
The industrial origin of value added is determined by the International Standard Industrial Classification (ISIC) revision 3
06/04/2019
Dr. Amr Nazieh

14. Ch 1: The nature of the national accounting
Gross Domestic Product (GDP), is gross domestic product converted to international dollars using Purchasing Power Parity (PPP) rates.
06/04/2019
Dr. Amr Nazieh

15. Ch 1: The nature of the national accounting
An international dollar has the same purchasing power in a given country as a United States Dollar in the United States. In other words, it buys an equivalent amount of goods or services in that country. Data has not been adjusted to a constant year.
06/04/2019
Dr. Amr Nazieh

16. GDP - expenditure based
Expenditure-based GDP is total final expenditures at purchasers’ prices (including the f.o.b. value of exports of goods and services), less the f.o.b. Value of imports of goods and services.
06/04/2019
Dr. Amr Nazieh

17. GDP - income based
Income-based GDP is compensation of employees, plus taxes less subsidies on production and imports, plus gross mixed income, plus gross operating surplus.
06/04/2019
Dr. Amr Nazieh

18. GDP - output based
Output-based GDP is the sum of the gross values added of all resident producers at basic prices, plus all taxes less subsidies on products.
06/04/2019
Dr. Amr Nazieh

19. GDP at market prices
GDP at market prices is the sum of the gross values added of all resident producers at market prices, plus taxes less subsidies on imports
06/04/2019
Dr. Amr Nazieh

20. Ch 1: The nature of the national accounting
GNI (gross national income)
GNI (gross national income) is GDP less net taxes on production and imports, less compensation of employees and property income payable to the rest of the world plus the corresponding items receivable from the rest of the world.
06/04/2019
Dr. Amr Nazieh

21. Ch 1: The nature of the national accounting
GNI (gross national income)
(in other words, GDP less primary incomes payable to non-resident units plus primary incomes receivable from non-resident units).
06/04/2019
Dr. Amr Nazieh

22. Ch 1: The nature of the national accounting
GNI (gross national income)
An alternative approach to measuring GNI at market prices is as the aggregate value of the balances of gross primary incomes for all sectors.
06/04/2019
Dr. Amr Nazieh