The National Accounts

Indirect taxes

Have an effect of making the market prices of goods and services higher than basic prices

Subsidies

Make the market prices of goods sand services lower than their basic prices/factor costs

Factor cost

The amount reicevied by the various factors of production

basic prices

amount recivable by the producer from the purchaser for a unit of a good/service produced as output-any tax payable + subsidy

Saving

the difference between income and expenditure

gross savings

Consists of saving by households, corporate saving, saving of general government and consumption of fixed capital

Net corporate saving

the difference between the total current income and expenditure of incorporated business enterprises

Total private saving

Saving by households plus corporate saving

Government saving

current income of general government less current expenditure

Consumption of fixed capital

Is the amount set aside to replace capital equipment which is used up in the production process

Contractual saving

refers to the act of saving against agreed contracts

Discretionary savings

All current disposable income that isn’t spent or saved contractually