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| 1. |
Explain any three base to measure the economic development of the country |
| Answer» EXPENDITURE ApproachThis method of DETERMINING GDP adds up the market value of all domestic expenditures made on final goods and services in a single year, including consumption expenditures, investment expenditures, GOVERNMENT expenditures, and net EXPORTS. Add all of the expenditures TOGETHER and you determine GDP.2) The Production ApproachThis method also called the Net Product or Value added method requires three stages of analysis. First gross value of output from all sectors is estimated. Then, intermediate consumption such as cost of materials, supplies and services used in production final output is derived. Then gross output is reduced by intermediate consumption to develop net production.3) The Income ApproachThis method of determining GDP is to add up all the income earned by households and firms in the year. The total expenditures on all of the final goods and services are also income received as wages, profits, rents, and interest income | |