How is a country funded?
The output approach focuses on finding the total output of a nation by directly finding the total value of all goods and services a nation produces. It only includes the final market value. Not the values along the way, such as raw materials, then refined to production materials. This is JUST the market value of a final product.
Remember that one, the output approach, because I am going to come back to it.
Or, there is:
The income approach equates the total output of a nation to the total factor income received by residents or citizens of the nation. The main types of factor income are:
Employee compensation (cost of fringe benefits, including unemployment, health, and retirement benefits);
Interest received net of interest paid;
Rental income (mainly for the use of real estate) net of expenses of landlords
Royalties paid for the use of intellectual property and extractable natural resources.
Most people will recognize this as the Income Tax of one type or another.
Lecture Notes on Macroeconomics Principles (click here)
by Peter Ireland
Department of Economics
Boston College
Microeconomics studies how households and firms make decisions and how
they interact in markets.
Macroeconomics studies the economy as a whole.
The output approach focuses on finding the total output of a nation by directly finding the total value of all goods and services a nation produces. It only includes the final market value. Not the values along the way, such as raw materials, then refined to production materials. This is JUST the market value of a final product.
Remember that one, the output approach, because I am going to come back to it.
Or, there is:
The income approach equates the total output of a nation to the total factor income received by residents or citizens of the nation. The main types of factor income are:
Employee compensation (cost of fringe benefits, including unemployment, health, and retirement benefits);
Interest received net of interest paid;
Rental income (mainly for the use of real estate) net of expenses of landlords
Royalties paid for the use of intellectual property and extractable natural resources.
Most people will recognize this as the Income Tax of one type or another.
Lecture Notes on Macroeconomics Principles (click here)
by Peter Ireland
Department of Economics
Boston College
Microeconomics studies how households and firms make decisions and how
they interact in markets.
Macroeconomics studies the economy as a whole.
