# Topic 4: Different approaches to GDP

Save this PDF as:

Size: px
Start display at page:

## Transcription

1 Topic 4: Different approaches to GDP PRINCIPLES OF MACROECONOMICS Dr. Fidel Gonzalez Department of Economics and Intl. Business Sam Houston State University

2 Three different approaches to measure the GDP The production of an economy is measured by the GDP. There are three ways to calculate it: 1) Spending approach. 2) Value added approach. 3) Income approach.

3 1) Spending approach: we look at the spending patterns of households, firm and the government (we covered this before). Y = C + I + G + NX If a household buys a good or services to consume it, it is considered part of C. If a firm or the government or a firm buys machinery, equipments, software, etc, (including changes in inventories) it is considered investment, I. The payments of the local, state and federal government to professors, national guard, etc. is considered government expenditures, G The goods and services sold and bought abroad are considered NX. In this approach we care who buys the good or service and for what purpose.

4 2) Value added: we measured how much value was added in the different stages of production. The sum of the value added in each stage of production for all goods is equal to the GDP. For instance in the production of a can of coke, we measure how much value was added by the aluminum, how much by the bottling company, how much by the delivery company, and how much by the final seller. In this approach we do not care who buys the good and the purpose of the purchase.

5 3) Income approach. We add the income of workers, business owners and government. Because each sale represents a source of income for the seller the market value of production is equal to the income of the people that produced the good plus the taxes paid to the government. Also, in this approach we do not care who buys the good and the purpose of the purchase.

6 Example: Consider an economy composed of two sectors: farm and bakery. The farm sector produces corn. One part of the corn is sold directly to household and the other part is sold to the bakery. The bakery produces bread using the corn. The bakery sells the bread to households. Farm Sector Wages: \$20 Taxes: \$10 Corn sold to households: \$90 Total revenue from corn selling:\$200 Bakery Sector Wages: \$50 Taxes: \$25 Corn bought to the farm: \$110 Total revenue from corn selling:\$300

8 3) Income approach. Wages paid by the farm: \$20 Profit for the farmer after taxes: ( )=\$170 Wages paid by the bakery: \$50 Profit for the baker after taxes: ( ) =\$115 Government revenue from taxes : = \$35 GDP = = 390 All three approaches give you the same number

9 Real Life Numbers: In the US for 2010 the breakdown for each approach is the following: 1) Spending Approach: GDP = C + I + G + NX GDP = 71% + 12% + 21% - 4% (we talked about this in detailed in the previous topic) 2) Value Added: GPD = Agriculture and others (1.1%) + Mining (1.9%) + Utilities (1.9%) + Construction (3.4%) + Manufacturing (11.7%)+ Trade (11.4%) + Transportation (2.8%) + Information (4.6%) + Finance (21.1%) + Business (12.1%) + Education (8.7%) + Recreation (3.6%) + Others (2.3%) + Government (13.4%) 3) Income Approach: GDP = Wages + Taxes + Profits GDP = 54.9% + 6.9% % In the national accounts GDP from the income approach is referred as Gross Domestic Income (GDI) but it is the same number as GDP. Currently, there is a controversy about how wages and profits are divided in the US. Many economists have pointed out that profits as a percentage of GDP have increased over the last 30 years. While this seems to be true, it is hard to know why this is happening and whether this is a problem or not.

10 Wages and Profits as a % of GDP in the USA Wages as a % of GDP Profits as a % of GDP Wages (left y-axis) Profits (right y-axis)

11 Market for goods and services (firms sell, households buy) Firms taxes Government taxes Households Labor, capital, natural resources money Market for factor of production (firms and government buy labor, capital and natural resources, households sell)

12 Looking at previous graph you can see that: 1) The spending approach is based on what happens in the top part of the diagram. This approach looks only at the transactions that take place in the market for goods and services. 2) The value added approach takes place inside the box that says firms. That is, it takes place during the production of goods and services. 3) The income approach takes place in the bottom part of the diagram. In the market for factor of production. As you can see all the approaches give you the same answer, it is just a different way to look at the economy.

13 One final conclusion is important. When the final sale of a good or services takes place that represents a revenue from the seller. After the sale the seller distributes that money into payment to its suppliers, wages to his workers, taxes to the government and his own profit. The money from the sale does not disappear. Hence, a purchase is also a source of income. The value of the sale is measure in the spending approach of the GDP, the income from the sale is measure in the income approach of the GDP. Because those two are exactly the same, we arrive to a very important conclusion: Production = Income GDP = Production = Income The GDP is the income and production of a region during a period of time.

### Week 4 Tutorial Question Solutions (Ch2 & 3)

Chapter 2: Q1: Macroeconomics P.52 Numerical Problems #3 part (a) Q2: Macroeconomics P.52 Numerical Problems #5 Chapter 3: Q3: Macroeconomics P.101 Numerical Problems #5 Q4: Macroeconomics P102 Analytical

### HW 2 Macroeconomics 102 Due on 06/12

HW 2 Macroeconomics 102 Due on 06/12 1.What are the three important macroeconomic goals about which most economists, and society at large, agree? a. economic growth, full employment, and low interest rates

### Chapter 4 Measuring GDP and Economic Growth

Chapter 4 Measuring GDP and Economic Growth 1 Gross Domestic Product 1) Gross domestic product is the total produced within a country in a given time period. A) market value of all final and intermediate

### Chapter 12. Aggregate Expenditure and Output in the Short Run

Chapter 12. Aggregate Expenditure and Output in the Short Run Instructor: JINKOOK LEE Department of Economics / Texas A&M University ECON 203 502 Principles of Macroeconomics Aggregate Expenditure (AE)

### Answers to Text Questions and Problems. Chapter 22. Answers to Review Questions

Answers to Text Questions and Problems Chapter 22 Answers to Review Questions 3. In general, producers of durable goods are affected most by recessions while producers of nondurables (like food) and services

### Measuring the Economy

Measuring the Economy A Primer on GDP and the National Income and Product Accounts Concepts Framework Measures Interactive Access October 2014 Measuring the Economy A Primer on GDP and the National Income

### AGRICULTURAL ECONOMICS. Preparing a Projected Cash Flow Statement. Introduction. What Information Is Provided? EC-616-W

AGRICULTURAL ECONOMICS EC-616-W Preparing a Projected Cash Flow Statement Freddie L. Barnard, Professor Elizabeth A. Yeager, Assistant Professor Department of Agricultural Economics Purdue University Introduction

### UNIT I NATIONAL INCOME AND MACROECONOMICS

UNIT I NATIONAL INCOME AND MACROECONOMICS 1 National Income National Income is defined as the sum total of all the goods and services produced in a country, in a particular period of time. Normally this

### Details and Analysis of Dr. Ben Carson s Tax Plan

FISCAL FACT Jan. 2016 No. 493 Details and Analysis of Dr. Ben Carson s Tax Plan By Kyle Pomerleau Director of Federal Projects Key Findings Dr. Ben Carson s tax plan would replace the federal income tax

### INTRODUCTION TO MACROECONOMICS MIDTERM- SAMPLE QUESTIONS

INTRODUCTION TO MACROECONOMICS MIDTERM- SAMPLE QUESTIONS MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In May 2009, Ford Motor Company's sales

### Practice Problems on Current Account

Practice Problems on Current Account 1- List de categories of credit items and debit items that appear in a country s current account. What is the current account balance? What is the relationship between

Chapter 7. Comparative Advantage and the Gains from International Trade Instructor: JINKOOK LEE Department of Economics / Texas A&M University ECON 203 502 Principles of Macroeconomics International Trade

### Farm Financial Statements Net Worth Statement Statement of Cash Flows Net Income Statement Statement of Owner Equity

Farm Financial Statements Net Worth Statement Statement of Cash Flows Net Income Statement Statement of Owner Equity Recording Transactions in the Date Cash Journal Description Value Amount (bu., lb.,

### 3 Macroeconomics LESSON 1

3 Macroeconomics LESSON 1 nesian Model Introduction and Description This lesson establishes fundamental macro concepts. The nesian model is the simplest macro model and is the starting point from the national

### How to Use the Cash Flow Template

How to Use the Cash Flow Template When you fill in your cash flow you are trying to predict the timing of cash in and out of your bank account to show the affect and timing for each transaction when it

### Cosumnes River College Principles of Macroeconomics Problem Set 11 Will Not Be Collected

Name: Solutions Cosumnes River College Principles of Macroeconomics Problem Set 11 Will Not Be Collected Fall 2015 Prof. Dowell Instructions: This problem set will not be collected. You should still work

### Lecture 3: National Income Accounting Reference - Chapter 5. 3) The Income Approach

Lecture 3: National Income Accounting Reference - Chapter 5 3) The Income Approach The income approach defines GDP in terms of the income derived or created from producing final goods and services. Net

### Agriculture & Business Management Notes...

Agriculture & Business Management Notes... Preparing an Income Statement Quick Notes... The income statement measures the profitability of a business over a specific period of time. Cash reporting of income

### IHS Global Economic and Financial Data

IHS Global Economic and Financial Data World s largest commercially available and frequently updated international data offering for over 200 global markets An indispensable resource for professionals

### Multiple Choice Identify the choice that best completes the statement or answers the question.

Unit 2 review Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which of the following is false about the circular-flow diagram? A. Households are the primary

### Accounting is a Kid's Game Introduction to the Dynamics of Financial Statements Raúl Hernández Garciadiego Gisela Herrerías Guerra

Accounting is a Kid's Game Introduction to the Dynamics of Financial Statements Raúl Hernández Garciadiego Gisela Herrerías Guerra Design: Clara Azcué Pérez-gil Cartoons: David Herrerías Guerra Educación

### 1. From the following data calculate GNP at factor cost by Income Method & Expenditure Method. Rs. in Crores

National Income Accounting 1. From the following data calculate GNP at factor cost by Income Method & Expenditure Method Items Rs. in Crores Net Domestic capital formation 500 Compensation of employees

### Workshop 6 The Building Blocks of Macroeconomics

Workshop 6 The Building Blocks of Macroeconomics Description Macroeconomics is the study of the behavior of the economy as a whole and the whole often behaves differently than the individual parts. This

### Regional Economic Impact Analysis

Section III: Applying Knowledge Regional Economic Impact Analysis Summary In this activity, teachers present a lecture related to assessing regional economic impacts and students use this knowledge to

### Measuring Economic Activity

sam14893_ch05_088 11/17/00 10:28 AM Page 88 CHAPTER 5 Measuring Economic Activity When you can measure what you are speaking about, and express it in numbers, you know something about it; when you cannot

### Econ 202 Section 2 Midterm 2

Douglas, Fall 2009 November 3, 2009 A: Special Code 0000 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 2 Midterm 2 1. The sale of stocks

### T1 Model Flow Diagrams

Slide 1 T1 Model Flow Diagrams M.C. McCracken Nancy Cebryk Informetrica Limited November 2003 Slide 2 T1 Flows (11/03) Demography Stocks of Wealth Final Demand Foreign Linkages Disposable Incomes Government

### Economics for Educators

Economics for Educators Lesson 18 and 5E Model Revised Edition Robert F. Hodgin, Ph.D. ii Economics for Educators, Revised Copyright 2012 All Rights Reserved 99 Economics for Educators, Revised Lesson

### Income Statement A Financial Management Tool

E-484 RM5-6.0 09-08 Risk Management Income Statement A Financial Management Tool Danny Klinefelter* An income statement measures the success of a business, in terms of net income or loss, for a period

### Economic Contribution of Telecommunication Companies Serving Greater Minnesota

EXTENSION CENTER FOR COMMUNITY VITALITY Economic Contribution of Telecommunication Companies Serving Greater Minnesota A REPORT OF THE ECONOMIC IMPACT ANALYSIS PROGRAM UNIVERSITY OF MINNESOTA EXTENSION

### Merchandise Accounts. Chapter 7 - Unit 14

Merchandise Accounts Chapter 7 - Unit 14 Merchandising... Merchandising... There are many types of companies out there Merchandising... There are many types of companies out there Service company - sells

### Hedging Natural Gas Prices

Hedging Natural Gas Prices Luke Miller Assistant Professor of Finance Office of Economic Analysis & Business Research School of Business Administration Fort Lewis College Natural Gas Industry U.S. natural

### Assessing and Improving Farm Profitability

1 Fact Sheet 539 Assessing and Improving Farm Profitability Is my farm making money? This is a question farm managers think about often. To stay in business, the farm must generate a profit, at least in

### GOVERNMENT OF INDIA MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

This Press Release is embargoed against publication, telecast or circulation on internet till 5.30 pm today i.e. 29th January, 2016. GOVERNMENT OF INDIA MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

### Input-Output Tables for Latvia: Compilation Practices and First Results

Input-Output Tables for Latvia: Compilation Practices and First Results Maija Kurcalte and Valerijs Vdovins Central Statistical Bureau of Latvia Thirteenth International Conference on Input-Output Techniques

### Updated System of National Accounts (SNA): Chapter 9: The use of income accounts

Statistical Commission Thirty-ninth session 26 29 February 2008 Item 3(d) of the provisional agenda Items for discussion and decision: National accounts Background document Available in English only Updated

### Financial Management: Cash vs. Accrual Accounting

E-475 RM5-16.0 10-08 Risk Management Financial Management: Cash vs. Accounting Danny Klinefelter, Dean McCorkle and Steven Klose* Selecting a record-keeping system is an important decision for agricultural

### Chapter: Practice Exam for Macro Indicators. Instruction: Name: Date: Multiple Choice

Chapter: Practice Exam for Macro Indicators Instruction: Name: Date: Multiple Choice 1. GDP does not include A) vegetables grown and consumed by a nonfarm family. B) the purchase of a new Porsche. C) the

### Transportation Infrastructure Investment Prioritization: Responding to Regional and National Trends and Demands Jeremy Sage

FREIGHT POLICY TRANSPORTATION INSTITUTE Transportation Infrastructure Investment Prioritization: Responding to Regional and National Trends and Demands Jeremy Sage Motivation Why do we (and should we)

### The Short-Run Macro Model. The Short-Run Macro Model. The Short-Run Macro Model

The Short-Run Macro Model In the short run, spending depends on income, and income depends on spending. The Short-Run Macro Model Short-Run Macro Model A macroeconomic model that explains how changes in

### Compiling the Gross Domestic Product: The Myanmar Experience

Compiling the Gross Domestic Product: The Myanmar Experience by Ministry of National Planning and Economic Development The views expressed in this document are of the author(s) and do not necessarily reflect

### a Saving Crisis? Over time, a country enhances its living

Do We Have The Regional Economist July 2005 www.stlouisfed.org a Saving Crisis? By Kevin L. Kliesen We sit here absorbed in a debate about how to maintain Social Security and, more important, Medicare

### CROP BUDGETS, ILLINOIS, 2015

CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2015 Department of Agricultural and Consumer Economics University of Illinois September 2015

### Big Concepts. Balance of Payments Accounts. Financing International Trade. Economics 202 Principles Of Macroeconomics. Lecture 12

Economics 202 Principles Of Macroeconomics Professor Yamin Ahmad Big Concepts Balance of Payments Equilibrium The relationship between the current account, capital account and official settlements balance

### What Forces Drive International Trade, Finance, and the External Deficit?

I What Forces Drive International Trade, Finance, and the External Deficit? 2 Whatever Happened to the Twin Deficits? One of the central goals of [the new (1989) administration s] economic policy should...

### GDP and National Accounts: key concepts National Accounts (Part A)

SUMMER SCHOOL ON MEASUREMENT OF WELL-BEING AND SOCIETAL PROGRESS Pisa 9-13 September 2013 GDP and National Accounts: key concepts National Accounts (Part A) Alessandra Coli, University of Pisa a.coli@ec.unipi.it

### Answers to Textbook Questions and Problems

Answers to Textbook Questions and Problems CHAPTER 1 The Science of Macroeconomics Questions for Review 1. Microeconomics is the study of how individual firms and households make decisions, and how they

### Macroeconomic. impact of the Wind Energy Sector in Belgium

Macroeconomic impact of the Wind Energy Sector in Belgium Report December 2012 For further information please visit www.deloitte.es Deloitte provides audit, tax and legal advisory, consulting and corporate

### SAMPLE QUESTION PAPERS

CLASS-XII EXAMINATION 2012 SAMPLE QUESTION PAPERS in ECONOMICS, BUSINESS STUDIES ACCOUNTANCY, MATHEMATICS Central Board of Secondary Education Preet Vihar, Delhi ECONOMICS 1 DESIGN OF QUESTION PAPER ECONOMICS

### SIERRA LEONE UPDATES FROM THE INSTANBUL PRIORITY AREAS OF ACTION

SIERRA LEONE UPDATES FROM THE INSTANBUL PRIORITY AREAS OF ACTION 1 OUTLINE OF PRESENTATION Recent Developments Istanbul Priority Areas of Action Poverty Levels Agenda for Prosperity Challenges Conclusion

### Details and Analysis of Senator Bernie Sanders s Tax Plan

FISCAL FACT Jan. 2016 No. 498 Details and Analysis of Senator Bernie Sanders s Tax Plan By Alan Cole and Scott Greenberg Economist Analyst Key Findings: Senator Sanders (I-VT) would enact a number of policies

### The Economic Impact of the New Hospital on the Economy of Drumright, Creek County, Oklahoma

The Economic Impact of the New Hospital on the Economy of Drumright, Creek County, Oklahoma Drumright Creek County Oklahoma Cooperative Extension Service Oklahoma Office of Rural Health Rural Health Policy

### SOURCES AND USES OF FUNDS ON KFMA FARMS

KANSAS FARM MANAGEMENT ASSOCIATION Your Farm - Your Information - Your Decision N E W S L E T T E R Volume 6, Issue 3 March 2012 SOURCES AND USES OF FUNDS ON KFMA FARMS A flow of funds report, often referred

### The impact on the UK economy of a reduction in fuel duty

The impact on the UK economy of a reduction in fuel duty Report for Fair Fuel UK March 2012 Centre for Economics and Business Research Ltd. Unit 1, 4 Bath Street, London EC1V 9DX t: 020 7324 2850 f: 020

### Cash Flow Projection for Operating Loan Determination

E-19 RM-7.0 02-09 Risk Management Cash Flow Projection for Operating Loan Determination Danny Klinefelter and Dean McCorkle* A cash flow statement can be simply described as a record of the dollars coming

### WASHINGTON, D.C. 20548

* I III r 18 ai UNITED STATES GENERAL ACCOUNTING OFFICE. WASHINGTON, D.C. 20548 RESOURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION B-214874 The Honorable E (Kika) de la Garza Chairman, Committee on

### Analysis 2: Reformpakke

Analysis 2: Reformpakke 1 st July 2011 Introduction This report shows the marginal effects of a set of different shocks on the DREAM model. These shocks are listed in Table 1, where also the effect on

### Econ 102 The Open Economy

Winter 2007 Econ 102 The Open Economy 1. Be sure to read your copy of the Wall Street Journal every weekday, looking especially for items related to the material in this course. Find an article in this

### dr Bartłomiej Rokicki Chair of Macroeconomics and International Trade Theory Faculty of Economic Sciences, University of Warsaw

Chair of Macroeconomics and International Trade Theory Faculty of Economic Sciences, University of Warsaw The small open economy The small open economy is an economy that is small enough compared to the

### Concepts and Methods of the U.S. Input-Output Accounts

September 2006 Updated April 2009 Concepts and Methods of the U.S. Input-Output Accounts Measuring the Nation s Economy. Concepts and Methods of the Input-Output Accounts Karen J. Horowitz Mark A. Planting

### INVENTORY MANAGEMENT AND CONTROL * Controlling Inventories. How to determine how much to order and how often to order.

INVENTORY MANAGEMENT AND CONTROL * INVENTORY MANAGEMENT AND CONTROL concerns most managers of agricultural marketing and supply businesses, whether they are retail, wholesale, or service oriented. The

### The University of Georgia

The University of Georgia Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences Estimating a Business Opportunity s Economic Vitality DRAFT Prepared by: Kent

### GDP: Does It Measure Up? May 2013. Classroom Edition. An informative and accessible economic essay with a classroom application.

PAGE ONE Economics the back story on front page economics NEWSLETTER GDP: Does It Measure Up? May 2013 Classroom Edition An informative and accessible economic essay with a classroom application. Includes

Twelve Steps to Ag Decision Maker Cash Flow Budgeting File C3-15 How much financing will your farm business require this year? When will money be needed and from where will it come? A little advance planning

### Schedule RC-C, part II, is to be completed only with the June 30 Report of Condition.

Schedule RC-C, Part II. Loans to Small Businesses and Small Farms General Instructions Schedule RC-C, part II, is to be completed only with the June 30 Report of Condition. Schedule RC-C, part II, requests

### Agenda. Saving and Investment in the Open Economy, Part 2. Globalization and the U.S. economy. Globalization and the U.S. economy

Agenda Globalization and the U.S. Economy Saving and Investment in the Open Economy, Part 2 Saving and Investment in Large Open Economies (LOE) The U.S. Current Account Deficit Fiscal Policy and the Current

### CHAPTER 7: CHANGE IN PRIVATE INVENTORIES

CHAPTER 7: CHANGE IN PRIVATE INVENTORIES Definitions and Concepts Recording in the NIPAs Overview of Source Data and Estimating Methods Benchmark-year estimates Nonbenchmark-year estimates Most-recent-year

### Trade Creates Jobs for Indiana

Trade Creates Jobs for Indiana Creating and preserving quality U.S. jobs is a goal shared by all Americans. With 95 percent of the world s consumers living outside of the United States, it makes sense

### FCC Ag Economics: Farm Sector Health Drives Farm Equipment Sales

FCC Ag Economics: Farm Sector Health Drives Farm Equipment Sales Fall 2015 FCC Ag Economics: Farm Sector Health Drives Farm Equipment Sales 1 Introduction Agriculture is always evolving. Average farm sizes

### Statistical Bulletin. Quarterly National Accounts, Quarter 2 (Apr to June) 2015

Statistical Bulletin Quarterly National Accounts, Quarter 2 (Apr to June) 2015 Coverage: UK Date: 30 September 2015 Geographical Area: UK and GB Theme: Economy Office for National Statistics 1 Main points

### ENCOURAGING A DYNAMIC LIFE INSURANCE INDUSTRY: ECONOMIC BENEFITS AND POLICY ISSUES

ENCOURAGING A DYNAMIC LIFE INSURANCE INDUSTRY: ECONOMIC BENEFITS AND POLICY ISSUES by Gerry Dickinson Professor and Director, Centre for Insurance & Investment Studies, City University Business School,

### Asset based finance in Scotland:

Asset based finance in Scotland: Finding the well in the desert June 2015 Contact: ralph.leishman@4-consulting.com Executive Summary Asset based finance can be used to secure funding against a range of

### Travel & Tourism Sector Ranking Australia

Travel & Tourism Sector Ranking Australia Summary of Findings, November 2013 Introduction Sector Ranking Analysis In order to better understand the importance of the Travel & Tourism industry in a global

### Answers to Text Questions and Problems in Chapter 8

Answers to Text Questions and Problems in Chapter 8 Answers to Review Questions 1. The key assumption is that, in the short run, firms meet demand at pre-set prices. The fact that firms produce to meet

### IE principal dimensions

Income Dimension of Impact Evaluations IE principal dimensions Income Health Education Other Presented on 4 September, 2014 at ADB 3ie PIDS Conference, Manila Impact Evaluation of Irrigation Distribution

### Farm families have traditionally used the single entry (often referred to as cash) method of accounting

File C6-33 July 2009 www.extension.iastate.edu/agdm Understanding Double Entry Accounting Farm families have traditionally used the single entry (often referred to as cash) method of accounting for their

### Practice Problems on the Capital Market

Practice Problems on the Capital Market 1- Define marginal product of capital (i.e., MPK). How can the MPK be shown graphically? The marginal product of capital (MPK) is the output produced per unit of

### COMMODITY PRICES AND THE TERMS OF TRADE

COMMODITY PRICES AND THE TERMS OF TRADE Introduction The global economic upswing since 2003 has spurred a sharp increase in world prices for resource commodities. Higher prices from recent contract negotiations

### Farm Record Keeping and Financial Analysis

Indiana Small Farms Conference 2013 Farm Record Keeping and Financial Analysis Alan Miller Farm Business Management Specialist March 1, 2013 Farm Records Opening discussion question What is the best reason

### NATIONAL ACCOUNTS: A PRACTICAL INTRODUCTION

ST/ESA/STAT/SER.F/85 Department of Economic and Social Affairs Statistics Division Studies in Methods Series F, No.85 Handbook of National Accounting NATIONAL ACCOUNTS: A PRACTICAL INTRODUCTION United

### Principles of Economics

Principles of Economics LEARNING OBJECTIVES Ohio Wesleyan University Goran Skosples 3. Interdependence and the Gains from Trade Why do people and nations choose to be economically interdependent? How can

### Outsourcing and Imported Services in BEA s Industry Accounts

Outsourcing and Imported Services in BEA s Industry Accounts Robert E. Yuskavage, Erich H. Strassner, and Gabriel W. Medeiros U.S. Department of Commerce Bureau of Economic Analysis Washington DC Paper

### Effective Federal Income Tax Rates Faced By Small Businesses in the United States

Effective Federal Income Tax Rates Faced By Small Businesses in the United States by Quantria Strategies, LLC Cheverly, MD 20785 for Under contract number SBAHQ-07-Q-0012 Release Date: April 2009 This

### Federal Reserve Bank of Kansas City

Lesson Description This lesson will introduce students to the Federal Reserve s Beige Book and how this report assesses economic conditions in the U.S. through looking at changes in different economic

### Principles of Macroeconomics. by John Bouman

Principles of Macroeconomics by John Bouman Table Of Contents Unit 1: Fundamental Concepts... 4 Introduction... 4 Section 1: Economics... 5 Section 2: The Production Possibilities Curve... 7 Section 3:

### THE DECLINING PERSONAL SAVING RATE: IS THERE CAUSE FOR ALARM?

THE DECLINING PERSONAL SAVING RATE: IS THERE CAUSE FOR ALARM? INTRODUCTION How much we save as a nation is important because saving provides the capital for the investment that fuels economic growth. Gross

### Digital Trade in the U.S. and Global Economies

Digital Trade in the U.S. and Global Economies For APEC Symposium on the Internet Economy Boracay, the Philippines May 18, 2015 Present by: Lin Jones (Lin.Jones@usitc.gov) Agenda o U.S. International Trade

### Economic Outlook for FY2005 and Basic Economic and Fiscal Management Measures

Provisional Translation Economic Outlook for FY2005 and Basic Economic and Fiscal Management Measures December 20th, 2004 Cabinet Approval 1. Main Economic Indicators for FY2004 and FY2005 Gross domestic

### FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING FORMATION 2 EXAMINATION - AUGUST 2012 NOTES: You are required to answer Question 1. You are also required to answer any three out of Questions 2 to 5. (If you provide answers to all

### 2. Simple but doesn t deal with stagflation simultaneous presence of inflation and unemployment.

Keynesian Model 1. The Keynesian policy prescription: if there is unemployment, run a deficit on the government account (negative govt savings). If there is inflation, run a surplus. 2. Simple but doesn

### Growth of the Service Sector

9 Growth of the Service Sector What are the economic reasons behind industrialization and postindustrialization? Everything that grows also changes its structure. Just as a growing tree constantly changes

### Chapter 1: The balance of payments: an account of transactions with the rest of the world

Chapter 1: The balance of payments: an account of transactions with the rest of the world 1. National income accounting for an open economy 1. 2. The nation income identity for an open economy The GDP

### The Economic Impact of the Health Sector on the Economy of Dallas County, Iowa a. Daniel Otto and Georgeanne Artz b

The Economic Impact of the Health Sector on the Economy of Dallas County, Iowa a Daniel Otto and Georgeanne Artz b The importance of medical and health facilities as community service providers is well

### The Feeders Meet the Eaters - Direct Marketing in Ontario s Organic Sector

The Feeders Meet the Eaters - Direct Marketing in Ontario s Organic Sector There is a transparency revolution in our food system. Eaters want to know and connect with the faces behind their food and farmers

### Lecture 1: current account - measurement and theory

Lecture 1: current account - measurement and theory What is international finance (as opposed to international trade)? International trade: microeconomic approach (many goods and factors). How cross country

### May 2015. The economic impact of the UK Maritime Services Sector: Business Services

May 2015 The economic impact of the UK Maritime Services Sector: Business Services Contents 1 Executive summary... 2 2 Introduction... 4 2.1 The channels of economic impact... 4 2.2 Report structure...

### Made In America: Computer and Electronic Products

U.S. Department of Commerce Economics and Statistics Administration Made In America: Computer and Electronic Products By Adji Fatou Diagne, Pathways Economist Edited by Jane Callen In 2012, shipments from

### China and the WTO: Implications for Grain Trade. Dr. Thomas I. Wahl IMPACT Center Washington State University

China and the WTO: Implications for Grain Trade Dr. Thomas I. Wahl Center Washington State University Overview of Presentation Background Why are we interested in China Current trade situation Demographics