PRODUCT: it is the output of the economy.That is the total amount of good and services produced.It is equal to the total income to all factors of production.
DOMESTIC PRODUCT(DP):It is the total output within the geographical boundary of a country.
NATIONAL PRODUCT: DP- Income of Foriegn nationals in India+ Income of Indian nationals abroad.
GROSS: Concept used to accomodate Drepreciation.
If depreciation is reduced from the product its becomes NET.
Thus we have GROSS DOMESTIC PRODUCT and NET DOMESTIC PRODUCT.
Similarly, GROSS NATIONAL PRODUCT and NET NATIONAL PRODUCT.
FACTOR COST:its is purely the cost associated with the monetary value of goods and services.ie. excluding NET TAXES.
NET taxes= Taxes- subsidies.
After adding the taxes it becomes MARKET PRICE.
therefore, we have GDP at factor cost and GDP at market price.
GDP Deflator: Its incorporates the Inflation factor. Once GDP is adjusted by GDP deflator, it is known as GDP at Constant prices.
Tellingly, GDP at factor cost at constant prices is the real measure of growth.
India uses this meathod for computaion of GDP.While China uses the expenditure method.There is an income method also.However, thoeretically, all the methods should give the same output for the economy.
DOMESTIC PRODUCT(DP):It is the total output within the geographical boundary of a country.
NATIONAL PRODUCT: DP- Income of Foriegn nationals in India+ Income of Indian nationals abroad.
GROSS: Concept used to accomodate Drepreciation.
If depreciation is reduced from the product its becomes NET.
Thus we have GROSS DOMESTIC PRODUCT and NET DOMESTIC PRODUCT.
Similarly, GROSS NATIONAL PRODUCT and NET NATIONAL PRODUCT.
FACTOR COST:its is purely the cost associated with the monetary value of goods and services.ie. excluding NET TAXES.
NET taxes= Taxes- subsidies.
After adding the taxes it becomes MARKET PRICE.
therefore, we have GDP at factor cost and GDP at market price.
GDP Deflator: Its incorporates the Inflation factor. Once GDP is adjusted by GDP deflator, it is known as GDP at Constant prices.
Tellingly, GDP at factor cost at constant prices is the real measure of growth.
India uses this meathod for computaion of GDP.While China uses the expenditure method.There is an income method also.However, thoeretically, all the methods should give the same output for the economy.
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