Unit 10 NATIONAL INCOME ACCOUNTING

KEY TERMS
1. Macroeconomics - Kinh tế học vĩ mô
• Macroeconomics is the study of the working of the economy as a
whole. Inflation, unemployment and growth are 3 of the most important
macroeconomics issues.

2. Inflation – Lạm phát

• It is a rise in the general level of price caused by an excess of
demand over supply and related to an increase in the supply of money, both as
bank-notes and in the form of bank credits.
• If the rise in price is very large and rapid, the condition is known as
hyper inflation.
• Inflation is usually measured by calculating the rate of increase in
prices during a stated period such as a month or years.
• The annual inflation rate is the percentage increase per annum in
the average price of goods and services.

3. Unemployment rate – Tỷ lệ thất nghiệp

• It is the percentage of the labor force that is unemployed.

4. Economic growth – Tăng trưởng kinh tế

• The rate at which the national income of a country increase.

5. Circular flow of income – Dòng luân chuyển thu nhập

• The flow of payments and receipts between domestic firms and
domestic household.
• Money passes from households to firms in return for goods and
services produced by firms; and money passes from firms to households in
return for factors services provided by households.
• The simple of notion that money value of the income of households
must equal the money value of output of firms and the money value of
households expenditures to purchase this output provides the basis for National
Income Accounting.

6. National income accounting – Hạch toán thu nhập quốc dân

• National income accounting is the process by which the millions of
transactions which occur in an economy over the course of a year are collated.

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 7. Gross domestic product (GDP) – Tổng sản phẩm quốc nội
• It is the value of output of the factors of production located
economy regardless of who owns these factors.
• GDP at market prices values domestic output at prices inclusive of
indirect taxes.
• GDP at factor cost measures domestic output at prices exclusive of
indirect taxes.

8. Gross national product (GNP) – Tổng sản phẩm quốc dân

• It measures total income earned by domestic citizens regardless of
the country in which their factor services were supplied.
• GNP = GDP + Net property income from abroad

9. Value added – Giá trị gia tăng

• It is the increase in the value of goods as a results of the production
process.
• Value added is calculated by deducting from the value of the firm’s
output the cost of the input goods that were used up in the act of producing that
output.

10. Final goods – Hàng hóa cuối cùng

• They are goods purchased by the ultimate user.
• They are either consumer goods purchased by households or
capital goods such as machinery which are purchased by firms.

11. Intermediate goods – Hàng hóa trung gian

• They are partly finished goods which form inputs to another firm’s
production process and are used up in that process.

12. Closed economy – Nền kinh tế khép kín

• It is the economy which does not transact with the rest of the world.

13. Open economy – Nền kinh tế mở cửa

• It is the economy which does have dealings with other countries.

14. Exports – Hàng hóa xuất khẩu

• They are goods that are domestically produced but sold abroad.

15. Imports – Hàng hóa nhập khẩu

• They are goods that are produced abroad but purchase for the use
in the domestic economy.

16. Net exports – Xuất khẩu ròng

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• They are the excess of export earnings over import spending.

17. Direct taxes – Thuế trực thu

• Taxes on income: Individuals pay income tax on earnings from
labor, rents and interests.

18. Indirect taxes – Thuế gián thu

• Taxes on expenditures: They are taxes levied on expenditures on
goods and services.
• The most important source of indirect tax revenue is Value Added
Tax (VAT), which is effectively a retail sales tax.
• Whereas a sales tax is collected only at the point of final sale to
consumer, VAT is collected at different stages of the production process.

19. Transfer payments – Thanh toán chuyển nhượng

• A payment made to an individual (usually by a government body)
which does not form part of any exchange of goods or services. Examples of
transfer payment include student grants and social security benefits. The
making of transfer payment is part of the process of redistribution of an
economy’s output.
• Transfer payment include pensions, unemployment benefit, and
subsidies to private firms (investment grants) and to state-owned firms (paying
for loss-making rural railways)
• Transfer payment are payments that do not require the provision of
any goods or services in return.

20. Leakages or Withdrawals – Các khoản rò rỉ

• Any income that is not passed on in the circular flow of income, and
therefore is not available for spending on currently produced goods and
services.
• The 3 board categories that are usually considered are savings,
taxation and imports.

21. Injections – Các khoản bơm vào

• An exogenous addition to the income of firms or household.
• An addition to the income of domestic households or firms that
does not result from the immediate expenditure of the private sector.
• The 3 board categories of injections usually considered are
investment, expenditure and exports.

22. Investment – Đầu tư

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• It is the purchase of new capital goods by firms.

23. Saving – Tiết kiệm

• It is the part of income which is not spent buying goods or services.

24. Depreciation or Capital consumption – Khấu hao

• The reduction in the value of assets, generally arising from wear to
tear.
• It measures the rate at which the value of the existing capital stock
declines per period as a result of wear and tear or of absolescence.

25. National income – Thu nhập quốc dân

• It is the economy’s net national product.
• It is calculated by substracting depreciation from GNP at factor cost.

26. Net property income from abroad – Thu nhập tài sản ròng từ nước ngoài
• The difference between profits, dividends and interest received on
assets held overseas by domestic residents and profits, dividends and interest
paid abroad on assets held in domestic economy by overseas residents.

27. Nominal GNP – Tổng sản phẩm quốc dân danh nghĩa
• It measures GNP at the prices currently prevailing when these
goods and services are produced.
• Nominal GNP is the value of production measured in the prices of
that year.

28. Real GNP – Tổng sản phẩm quốc dân thực tế

• Real GNP or GNP at constant prices, adjusts for inflation by
measuring GNP in different years at the prices prevailing at some particular
calendar date known as base year.

29. GNP deflator – Hệ số giảm phát tổng sản phẩm thu nhãp quốc dân
• It is the ratio of nominal GNP to real GNP expressed as an index.

30. Per capita real GNP – Tổng sản phẩm quốc dân tính theo đầu người
• It is real GNP divided by the total population.
• It is real GNP per head.

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