SUMMARY
TEXTBOOK: Oxford Successful Economics Grade 11 Learner’s Book
AUTHOR: E. Basson, V. Beautement, L. Smith
CURRICULUM: CAPS
MODULE: 1 Macroeconomics
CHAPTER: 2 Measuring the output of economic goods and services
INTRODUCTION:
- Unit 1 Gross domes c product and gross domes c expenditure
- Unit 2 Final consump on expenditure by households
- Unit 3 Consump on expenditure by government
- Unit 4 Gross fixed capital forma on
- Unit 5 Na onal accoun ng aggregates
GROSS DOMESTIC PRODUCT AND GROSS DOMESTIC EXPENDITURE
GDP: is the value of the final output produced within the borders of a country within a given period of time
(usually one year).
GNI: is the value of the final output produced by the citizens of a country irrespective of where they are
located within a given period of time (usually one year)
Firms employ factors of production.
Domestic and foreign owners of the factors of production earn income (rent, wages, interest
and profit).
Income is then spent on the output produced.
Two assumptions:
o All income earned by households is spent.
o All output produced by firms is sold.
Final output = final income
FINAL CONSUMPTION EXPENDITURE BY HOUSEHOLDS, CONSUMPTION EXPENDITURE BY GOVERNMENT
AND GROSS FIXED CAPITAL FORMATION TABLE
TYPE DEFINITION CHARACTERISTICS IMPORTANCE
By households is the Services: are non-material and are used To satisfy the needs
total spending of all as they are produced. and wants of
households on final households or
goods and services for a Non-durable goods: are goods that can individuals.
specific period of time. be used only once such as petrol or
food.
FINAL
CONSUMPTION Semi-durable goods: are those that last
EXPENDITURE for relatively short periods of time and
can be used more than once but needs
to be replaced frequently, such as pens.
TEXTBOOK: Oxford Successful Economics Grade 11 Learner’s Book
AUTHOR: E. Basson, V. Beautement, L. Smith
CURRICULUM: CAPS
MODULE: 1 Macroeconomics
CHAPTER: 2 Measuring the output of economic goods and services
INTRODUCTION:
- Unit 1 Gross domes c product and gross domes c expenditure
- Unit 2 Final consump on expenditure by households
- Unit 3 Consump on expenditure by government
- Unit 4 Gross fixed capital forma on
- Unit 5 Na onal accoun ng aggregates
GROSS DOMESTIC PRODUCT AND GROSS DOMESTIC EXPENDITURE
GDP: is the value of the final output produced within the borders of a country within a given period of time
(usually one year).
GNI: is the value of the final output produced by the citizens of a country irrespective of where they are
located within a given period of time (usually one year)
Firms employ factors of production.
Domestic and foreign owners of the factors of production earn income (rent, wages, interest
and profit).
Income is then spent on the output produced.
Two assumptions:
o All income earned by households is spent.
o All output produced by firms is sold.
Final output = final income
FINAL CONSUMPTION EXPENDITURE BY HOUSEHOLDS, CONSUMPTION EXPENDITURE BY GOVERNMENT
AND GROSS FIXED CAPITAL FORMATION TABLE
TYPE DEFINITION CHARACTERISTICS IMPORTANCE
By households is the Services: are non-material and are used To satisfy the needs
total spending of all as they are produced. and wants of
households on final households or
goods and services for a Non-durable goods: are goods that can individuals.
specific period of time. be used only once such as petrol or
food.
FINAL
CONSUMPTION Semi-durable goods: are those that last
EXPENDITURE for relatively short periods of time and
can be used more than once but needs
to be replaced frequently, such as pens.
