Measurement of National Income

These flashcards cover the various methods of measuring national income along with key terms related to each method.

Value Added Method

A method for calculating national income based on the value added at each stage of production.

Income Method

Also known as the Factor Income Method; it calculates national income by summing all incomes earned by factors of production.

Expenditure Method

A method of calculating national income by adding total expenditure on the nation's final goods and services.

Gross Value Added at Market Price (GVAMP)

The total value of output at market price minus the value of intermediate consumption.

Intermediate Consumption

The value of goods and services consumed in the production process.

GDPMP

Gross Domestic Product at Market Price.