Econ Sec 2.pptVIP

Outcome 2 Section 2 Session 11-13 Week 12-14 Nov. 16- 30 Assessment of Outcome 2: Week 15 Dec. 8, Thursday Session 11 Nov. 16 Section 2 Outcome 2  p144-p210 National Income 国民收入 Section 2 is divided into 3 parts: Part 1 National Income and its calculation 国民收入及其计算 Part 2 Circular Flow of Income 收入循环流 Part 3 Consumption, saving and the Multiplier 消费,储蓄及乘数 Part 1 National Income and its calculation 国民收入及其计算 ● Macroeconomics 宏观经济学 Studies economic decision-making the use of a country’s resources Issues affecting the entire country: 宏观经济学研究与国家经济决策和国家资源使用相关的影响整个国 家的问题, 例如: Unemployment 失业 , inflation 通货膨胀 , economic growth 经济增长 , Money Banking 货币和银行 , International trade 国际贸易 , . . . ● Microeconomics 微观经济学 √ Studies decision making of economics in a smaller scale: 微观宏观经济学研究小范围内的经济决策问题. Business firms 企业 , consumers workers 消费者和员工 , an industry 一个行业 , . . . Issues: Profit 利润 , Costs 成本 , Wage 工资 , Pricing 定价 , Competition 竞争 , . . . We have finished some basic concepts in microeconomics. Now we start to study some basic Macroeconomics principles. ■ Introduction: ●Economic activity 经济活动） is the transformation through various production processes of scarce resources into goods and services needed to satisfy needs and wants. Economic output Need wants Goods Services ↑ satisfied ↑ ● National income output NI 国民收入或产出 ○ National income is the total value of goods services produced in a country in a year. ○ National Income measures how much everyone in the economy has earned. ○ Relationship of GNP, GDP and NI GNP Gross National Product 国民生产总值 GDP Gross Domestic product 国内生产总值 GNP GDP + Factor payment from abroad - Factor payment to Abroad National Income NI GNP – Depreciation – Indirect Business Taxes ■ Calculation of National income ● The 3 methods will give the same results ● Output method to calculate National income ● Income method to calculate UK Income ● Expend