Definition of Production
The statistical definition of gross output is dependent upon the definition of production applied. Typically some economic flows and activities are excluded from coverage in calculating the value of gross output, on the ground that they are unrelated to production in the domestic economy. These include certain foreign transactions, property income, transfers, land sales, and various government disbursements, unpaid housework and voluntary work. On the other hand, items are included which some economists would regard as spurious, such as the imputed rental value of owner-occupied housing (this is the average rents, at market rates, which owners of residential housing would receive if they rented out the housing they occupy).
Read more about this topic: Gross Output
Famous quotes containing the words definition of, definition and/or production:
“Im beginning to think that the proper definition of Man is an animal that writes letters.”
—Lewis Carroll [Charles Lutwidge Dodgson] (18321898)
“Its a rare parent who can see his or her child clearly and objectively. At a school board meeting I attended . . . the only definition of a gifted child on which everyone in the audience could agree was mine.”
—Jane Adams (20th century)
“To expect to increase prices and then to maintain them at a higher level by means of a plan which must of necessity increase production while decreasing consumption is to fly in the face of an economic law as well established as any law of nature.”
—Calvin Coolidge (18721933)