output approach

(noun)

GDP is calculated using the output approach by summing the value of sales of goods and adjusting (subtracting) for the purchase of intermediate goods to produce the goods sold.

Related Terms

  • income approach
  • expenditure approach

Examples of output approach in the following topics:

  • Calculating GDP

    • GDP can be calculated through the expenditures, income, or output approach.
    • However, another approach referred to as the "output approach" calculates GDP by evaluating the value of all sales and adjusting for the purchase of intermediate goods (to remove double counting).
    • The most well known approach to calculating GDP, the expenditures approach is characterized by the following formula:
    • The output approach is also called "net product" or "value added" method.
    • Net value added = Gross value of output – Value of intermediate consumption.
  • Learning from GDP

    • GDP can be evaluated by using an output approach, income approach, or expenditure approach.
    • The output approach focuses on finding the total output of a nation by directly finding the total value of all goods and services a nation produces.
    • The income approach equates the total output of a nation to the total factor income received by residents or citizens of the nation.
    • The expenditure approach is basically an output accounting method.
    • The basic formula for domestic output takes all the different areas in which money is spent within the region, and then combines them to find the total output .
  • National Income

    • A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region.
    • The output approach focuses on finding the total output of a nation by directly finding the total value of all goods and services a nation produces:
    • The income approach equates the total output of a nation to the total factor income received by residents or citizens of the nation:
    • The expenditure approach focuses on finding the total output of a nation by finding the total amount of money spent and is the most commonly used equational form:
    • The expenditure approach is a common method for evaluating the value of an economy at a given point in time.
  • Gross Domestic Product

    • The product approach is the most direct, summing the outputs of every class of enterprise to arrive at the total.
    • This approach determines GDP by finding the sum of all producers' incomes.
    • The expenditure approach only measures products that are intended to be sold.
    • The production approach is also known as the Net Product or Value Added method.
    • Estimating the gross value of domestic output in various economic activities;
  • Graphical Representations of Production and Cost Relationships

    • At the maximum of TP (LB amount of labour, output QB) at point B, the VC function will "turn back" and as output decreases the VC will continue to rise.
    • This will be the same output level were the MC is a minimum.
    • as long as Q increases, AFC will decrease, it approaches the Q axis "asymptotically."
    • The average total cost (ATC) is the total cost per unit of output.
    • In Figure V.5, the AFC is shown declining over the range of output.
  • Continuity

    • A continuous function is a function for which, intuitively, "small" changes in the input result in "small" changes in the output.
    • A continuous function is a function for which, intuitively, "small" changes in the input result in "small" changes in the output.
    • The function $f$ is continuous at some point $c$ of its domain if the limit of $f(x)$ as $x$ approaches $c$ through the domain of $f$ exists and is equal to $f(c)$.
    • If the point $c$ in the domain of $f$ is not a limit point of the domain, then this condition is vacuously true, since $x$ cannot approach $c$ through values not equal to $c$.
  • Defining Personal Selling

    • The personal selling process is a seven step approach: prospecting, pre-approach, approach, presentation, meeting objections, closing the sale, and follow-up.
    • The pre-approach is used for preparing for the presentation through customer research and goal planning for the presentation.
    • The approach is when the salesperson initially meets with the customer and determines a customer's wants and needs.
    • The relatively new field of sales process engineering views "sales" as the output of a larger system, not just as the output of one department.
    • From this perspective, "sales" and "marketing," among others, represent a number of processes whose inputs and outputs supply one another to varying degrees.
  • Quality Control

    • Quality control is a process that evaluates output against a standard and takes corrective action when output doesn't meet that standard.
    • Quality control is a process that evaluates output against a standard and takes corrective action when output doesn't meet these predetermined standards.
    • At that time quality control evolved to quality assurance and is now better known as a Strategic Approach, a tool for improving not only products but also processes and services.
  • Measuring Productivity

    • Productivity is represented by production functions, and is the amount of output that can be generated from a set of inputs.
    • Productivity, in economic terms, measures inputs and outputs to derive overall production efficiency within a system.
    • Increased productivity means more output is produced from the same amount of inputs.
    • There are a variety of ways to approach the measuring of productivity in the context of production functions:
    • In this circumstance 'Q' is the quantity of output while each 'x' is a factor input.
  • Continuous REGE for geodesic distances (Padgett's marriage data)

    • An alternative approach to the undirected Padgett data is to treat the different levels of geodesic distances as measures of (the inverse of) strength of ties.
    • The first panel of the output displays the approximate pair-wise regular similarities as a matrix.
    • The continuous REGE algorithm applied to the undirected data is probably a better choice than the categorical approach.
    • The result still shows very high regular equivalence among the actors, and the solution is only modestly similar to that of the categorical approach.
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