Quick Answer: What Is National Expenditure?

What is the national income formula?

As an example, the basic accounting identity for GDP, sometimes known as the national income identity, is computed using the following formula: GDP = consumption + investment + government spending + (exports − imports).

What is national product economics?

What Is Net National Product (NNP)? Net national product (NNP) is the monetary value of finished goods and services produced by a country’s citizens, overseas and domestically, in a given period.

What is GDP and NNP?

depreciation: the process by which capital ages and loses value gross domestic product (GDP): the value of the output of all final goods and services produced within a country in a year gross national product (GNP): includes what is produced domestically and what is produced by domestic labor and business abroad in a …

Which country has the highest GNP?

Gross National ProductCountryGNPPer CapitaUSA$10,533$38Japan$4,852$38Germany$2,242$27Britain$1,544$2622 more rows

Is Rent a capital expenditure?

Capital expenses are not used for ordinary day-to-day operating expenses of a business, like rent, utilities, and insurance. … On the other hand, if you buy office furniture, it is expected that it will last longer than a year, so you are buying a fixed asset, and that purchase is considered a capital expense.

What are the 5 measures of national income?

A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), gross national product (GNP), net national income (NNI), and adjusted national income (NNI adjusted for natural resource depletion – also called …

What do you mean by government expenditure?

Government spending refers to money spent by the public sector on the acquisition of goods and provision of services such as education, healthcare, social protection. … This includes public consumption and public investment, and transfer payments consisting of income transfers.

What are the 4 types of expenses?

You might think expenses are expenses. If the money’s going out, it’s an expense. But here at Fiscal Fitness, we like to think of your expenses in four distinct ways: fixed, recurring, non-recurring, and whammies (the worst kind of expense, by far).

What are 3 examples of expenditure?

Expenditure ExampleS. NoExpenditure TypeExpenditure Classification1Purchase of raw materialsRevenue Expenditure – Direct2Electricity billsRevenue Expenditure – indirect3Advertising expensesRevenue Expenditure – indirect4Direct labor costsRevenue Expenditure – Direct6 more rows

What are the types of national income?

5. Major Classes of National Incomes:Wages and Salaries: These are called income from employment since these represent that part of the value of production which is attributed to labour. … Gross Trading Profits: … Capital Consumption Allowance: … Income of the Self-Employed: … Imputed Income:

What are the 2 types of expenditure?

Types of Expenditures in AccountingCapital Expenditure. A company incurs a capital expenditure. (CapEx) when it purchases an asset with a useful life of more than 1 year (a non-current asset). … Revenue Expenditure. A revenue expenditure occurs when a company spends money on a short-term benefit (i.e., less than 1 year).

What is difference between GDP and GNP?

GDP measures the value of goods and services produced within a country’s borders, by citizens and non-citizens alike. GNP measures the value of goods and services produced by only a country’s citizens but both domestically and abroad. GDP is the most commonly used by global economies.

What is an example of expenditure?

The definition of an expenditure is the act of spending money or time and it is something on which you spend money. An example of an expenditure is the money spent on office equipment that you have purchased. (uncountable, countable) Act of expending or paying out.

What is called expenditure?

An expenditure is money spent on something. Expenditure is often used when people are talking about budgets. It is the government’s job to decide what to do with tax money collected, or in other words, to determine the expenditure of public funds. The word is more than a long way of saying expense.