Gross Domestic Product and Gross National Product

1. Gross Domestic Product or GDP is the amount of money a country makes from goods and services inside the country for a certain of time, usually for a year.

2. When GDP is calculated different sectors of economy can be analysed. In the United Kingdom the following sectors of economy are usually analysed: manufacturing, services (financial, professional and scientific services, leisure and tourism), energy (oil, natural gas, coal) and agriculture. In the United States the following sectors of economy are usually analyzed when the GDP is defined: construction and manufacturing; trade and finance; transport, communication and services; agriculture; and mining.

3. Speaking, as an example, about one of the recent years GDP figures, the following can be quoted: In the UK the services sector accounted for roughly 60 per cent of Gross Domestic Product. Manufacturing sector accounted for a small percentage of Gross Domestic Product. Energy production sector accounted for about 8 per cent of GDP. Agriculture — only for 4 per cent of GDP. But the agricultural sector satisfies two thirds of the country's needs. And only a small fraction of the total population, about 2 per cent, are engaged in agriculture.

4. In the USA the construction and manufacturing sector accounted for 40 per cent of GDP; trade and finance earned 25 per cent of GDP; transport, communication and services sector earned 20 per cent of GDP; agriculture and mining earned 5per cent of GDP. By the way 10 per cent of the employed population of the United States is engaged in agriculture.

5. So, the Gross domestic product (GDP) is the value of output of the factors of production located in the domestic economy. It can be measured in three equivalent ways: as the sum of value added in production, the sum of factor incomes including profits accruing to entrepreneurs, or the sum of final expenditure.

6. What Does GNP Actually Measure? A company's accounts provide a picture of how the company is doing. Our system of national income accounting allows us to assess the performance of the economy as a whole. But, just as a company's accounts may conceal as much as they reveal, we must interpret the national income accounts with some care. We concentrate on GNP as a measure of national economic performance.

7. GNP measures total income earned by domestic citizens regardless of the country in which their factor services were supplied. GNP equals GDP plus net property income from abroad. GNP takes no account of non-market activities such as pollution, and valuable activities such as work in the home. No allowance is made for production unreported by tax evaders. GNP doesn't measure the value of leisure.

Упражнение 5

1. Speaking, as an example, about one of the recent years GDP figures, the following can be quoted: - В качестве примера, рассматривая показатели ВВП одного из последних лет, можно обратиться к следующим данным:

2. When GDP is calculated different sectors of economy can be analysed. – Когда осуществляется подсчёт ВВП, анализу могут быть подвергнуты различные сектора экономики.

3. It can be measured in three equivalent ways: - Он (ВВП) может быть подсчитан тремя эквивалентными способами.

4. But, just as a company's accounts may conceal as much as they reveal… - Но, точно также как отчетность компании может скрывать ровно столько, сколько они могут отражать,

5. …we must interpret the national income accounts with some care. – мы должны интерпретировать данные о национальном доходе с осторожностью.

Упражнение 6

A company's accounts provide a picture of how the company is doing. – Отчетность компании отражает состояние того, как компания функционирует.

1. General question – Is the company doing?

2. Special question – How is the company doing?

3. Special question – What is the company doing?

4. Alternative question – Is the company doing or competing?

5. Disjunctive question – The company is doing (fine), isn’t it? (не так ли)

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