WEEK 3-4: ECONOMICS AND SOCIO-ENVIRONMENTAL REALITIES IN CONSUMER EDUCATION Flashcards
1
Q
The total value of the goods and services produced by the residents of a nation during a specified period
(as a year).
A
Gross National Product (GNP)
*Gawa Ng Pinoy
2
Q
The GNP counts only…
A
- The final value of goods and services
- The values of output currently produced
3
Q
Computed to see the strength of a country’s local economy
A
Gross Domestic Product (GDP)
4
Q
SOME ADVANTAGES OF GNP AND GDP
A
- Comprehensive measurement
- International perspective
- Long-term trend analysis
- Income distribution analysis
- Economic productivity
measurement - Investment and business decision
- Fiscal and monetary policy
formulation
5
Q
A
6
Q
A
7
Q
SOME LIMITATIONS OF GNP AND GDP
A
- Exclusion of non-market activities
- Neglect of quality-of-life indicators
- Disregard for income inequality
- Vulnerability to statistical inaccuracies
- Focus on quantitative aspects only
- Environmental impact neglect
- Inequality measurement challenges
8
Q
Alternative Indicators
A
- Human Development Index
- Genuine Progress Indicators
- National Happiness Index
9
Q
The final purchase of goods and services by individuals
A
Consumption
10
Q
Factors Affecting Consumption
A
- Food
- Basic necessities
- Leisure
- Transportation
- Bills
- Price
11
Q
*The amount of money that households have available for spending and saving after income
taxes have been accounted for
*Monitored as one of the many key economic indicators used to view
the overall state of the economy
A
Disposable Income
12
Q
Formula for Computing Disposable Income (Yd)
A
- Yd = Y – T
- Y = personal income
- T = Taxes
