Important Concepts and Adjustments

1.      From "market price" to "factor cost".

• Market price refers to the prices at which consumers pay for their goods and services, while factor cost refers to the actual cost of producing these items.

2.      From "Domestic to "National " Output/income

• "Domestic" values refer to the income/output received or produced by both citizens and foreigners from economic activities within the country only.
• "National" values refer to the economic activities derived from the citizens of the country, both domestically and abroad.

3.      From "Gross" to "Net" output/income

• "Gross" values refer to the total output produced during a given period without regard to depreciation while "net" values exclude that amount of depreciation.

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