Measuring the Nation's Economic Performance

Gross Domestic Expenditure

It is the sum of the market values of all final goods and services purchased by the households, the government, and the business sector in a year.

Net national Product

It measures economic performance minus depreciation allowance.

Capital Formation

This represents the business sector. It is commonly known as investment, is the aggregate expenditures on fixed capital and on changes in stocks.

National Product

Wonnacott defined this as the money value of goods and services the economy produced in a period of time. It is usually computed on a yearly basis.

Nondurable goods

goods that last a short period of time, such as food, light bulbs, and sneakers

Durable goods

goods that last for a relatively long time, such as refrigerators, cars, and DVD players

Gross National Product

It is the biggest national income account. It is the total of all factor incomes of the country within one year.

Government Expenditure

It is the biggest single spender in the economy. It spends on goods and services that benefit the whole nation.

Closed economy

It is a country that does not relate economically with the rest of the world.

Final product

It is a good or a service purchased by the ultimate user.

National product approach

It is also called the expenditure approach. It takes into account the expenditures incurred by the four macroeconomic sectors.

Disposable personal income

It is commonly known as the people's take home pay.

Personal Income

It is funded by personal income. It is just a portion of national income.

Intermediate product

It is intended for resale or further processing

Market price

The amount a buyer pays for the product he or she purchases from the market.

Gross Domestic Product

The biggest national product account of countries today. The sum of private consumption expenditures, government expenditures on goods and services, capital formation and net export.

Net export

The difference of the total value of merchandise exports and the total value of the merchandise imports.

Personal Consumption Expenditures

These refer to household consumption. This is the biggest component of the national product of the Philippine economy.