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Showing posts from January, 2014

INVESTMENT CULTURE

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The Keynesian concept defines investment as a process of adding to existing capital stocks. In other words investment is a process of acquiring assets be it fixed or capital. Investment process is an attitude that should be on the minds of any success oriented personality. But its so unfortunate that so many people lack the insight as to the benefits of investment culture. This is why people complain of financial problems even after years of gainful employment. Investing is a process that requires time and at such you must you must be ready to endure the time it will take for you to start reaping the fruits. It could be inform of buying shares (fixed investment) or inform of buying goods designed to be used in making other goods (Inventories) . It could also be inform of purchasing or building infrastructures and other form of properties (Residential investments). If you must make it financially and economically you must be ready to invest.

GDP MEASUREMENT METHODS AND PROBLEMS OF GDP AS A MEASURE OF NATIONAL INCOME

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Gross domestic product popularly known as GDP is the measure of the total output produced within a country at a particular period of time usually one year. It excludes all income from abroad be it from foreigners or citizens but includes all income earned by both foreigners and citizens living in a country. Gross Domestic Product is a broad topic but we shall be restricting our views to the three measurement methods that can be used in measuring GDP 1 OUTPUT METHOD OR VALUE ADDED METHOD: The differences between the sales values and the values of the intermediate goods used in the production are added together to get the GDP. For example the difference between the value of a loaf of bread and the flour used in making the bread is the value added to the flour. It's such values that are added to give the GDP in this method. 2.EXPENDITURE METHOD: This method aggregates all expenditures on domestic goods and services including investments, government demands, net export and consumpti