What is the full form of GDP?
GDP full form:- Gross Domestic Product
GDP full form in economics
Gross Domestic Product:- Within the domestic limit of the country, in an accounting year, the gross value addition done by all the entrepreneurs whether resident or non-resident is called Gross Domestic Product.
The increase in foreign exchange by the same citizens of the country is part of the GDP of the country concerned.
GDP factor cost:- Factor cost is the absolute value of the productive factors consumed or used in the production of an item or service. Many types of things are involved in the production of an item or service. Such as – Land, labor, capital, entrepreneurship, etc. The producers of these goods and services assess the cost of these factors during production. After this, the price of that item or service is determined. Factor cost does not include the tax paid to the government. Because it is not directly involved in the production process. But if any subsidy is received. So it is definitely included in the factor cost. Because it affects the cost of production. GDP at factor cost is also called pure production or pure value addition method.
GDP at market price:- When an item or service is produced. It is then sold in the market at a fixed market rate. Market value is the price assigned to a seller at the time of purchase by a consumer. Factor cost includes the tax paid to the government to arrive at the market price. Whereas the subsidy given by the government is reduced from the factor cost. It is therefore included in the market price. Because it increases the selling price of goods or services. While the subsidy is reduced.Because the factor cost is calculated only at the time of determination.
What are the 3 types of GDP?
- GDP:- Gross Domestic Product
- GNP:- Gross National Product
- NNP:- Net National Product