Measurement of GDP under product method
- 1. MEASUREMENT OF GDP UNDER PRODUCT METHOD PRESENTED BY:: RISHI KHNAL BIM 5TH 108 2/1/2018 1
- 2. CONTAIN Introduction GDP under product method GDPs different approach Component of NI under product method Example Conclusion Reference 2/1/2018 2
- 3. INTRODUCTION GDP is the total unduplicated value of the goods and services produce in a country in given period GDP can be measured in three ways 1 production approach 2 income approach 3 expenditure approach 2/1/2018 3
- 4. GDP UNDER PRODUCT METHOD Product method is called the net product or value added method GDP is sum of value added by intuitional unit plus tax and import less subsidies on product. There are two approach method under this final product and approach method final product approach This method include only final goods and services to calculate GDP Mathematically in final product approach GDPmp=total product of (primary sector +secondary sector + tertiary sector) 2/1/2018 4
- 5. Value added approach In this method adding the value of goods and services at each stage of production Mathematically Value added=value of output –cost of intermediate cost 2/1/2018 5
- 6. COMPONENT OF NI UNDER PRODUCT METHOD Production made by primary sector ( forestry, agriculture, food crops ,cash crops ,animal husbandry , mining etc Production made by secondary sector(gas , water ,manufacturing ,construction ,supply Production made by territory sector(service sector : banking , transport and communication , health and education 2/1/2018 6
- 7. Net factor income fro abroad Deprecation Net indirect taxes : which is the difference between indirect taxes and subsides 2/1/2018 7
- 8. EXAMPLE OF CALCULATION OF GDP BY FINAL PRODUCT METHOD Description Quantity Price Amount Wheat 100 10 100*10=1000 Cloth 200 20 200*10=2000 Noodles 300 10 30*10=3000 2/1/2018 8
- 9. Solution…… GDPmp = P1Q1*P2Q2*P3Q3 =100*10+200*20+300*10 =Rs 8000 2/1/2018 9
- 10. CONCLUSION Product method of calculation of GDP is simple method Its easy compare to income and expenditure method It is simple to understand Easy to calculate Save time etc 2/1/2018 10
- 11. REFERENCE Text book of ARCHDIA publication www.ecosolution.com www.slideshare.com 2/1/2018 11
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