GDP:-The Gross Domestic Product or GDP is a measure of all of the services and goods produced in a country over a specific period; classically a year.
GNP:-Gross National Product is measured as GDP plus income of residents from investments made abroad minus income earned by foreigners in domestic market.
National Income:-National Income is the money value of all goods and services produced in a country during the year.The national income of a country, or region, divided by its population. Per capita income is often used to measure a country’s standard of living.
Indicators of GDP, GNP, NI Growth
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Gross Domestic Product (GDP): It is the sum total of the market value of the final goods and services produced within the geographical boundary of a country during an accounting year.
Gross National Product (GNP): GNP = GDP + Net factor income from abroad.
Net factor income = X – M, [X = Income earned and received by nationals in foreign countries; M=Income earned by foreign nationals in a country.]
It better indicates the production potential of the nationals as against GDP. In India’s case, GNP is less than GDP. In other words, net factor income is negative in India.
Net National Product (NNP): NNP = GNP – Depreciation
Depreciation is consumption of fixed capital in the process of production.
National Income: When NNP is calculated at factor cost, it is known as National Income. In other words, it can be represented as,
National Income = NNP at market prices – Indirect taxes + subsidies.
GNP:-Gross National Product is measured as GDP plus income of residents from investments made abroad minus income earned by foreigners in domestic market.
National Income:-National Income is the money value of all goods and services produced in a country during the year.The national income of a country, or region, divided by its population. Per capita income is often used to measure a country’s standard of living.
Indicators of GDP, GNP, NI Growth
******************************
Gross Domestic Product (GDP): It is the sum total of the market value of the final goods and services produced within the geographical boundary of a country during an accounting year.
Gross National Product (GNP): GNP = GDP + Net factor income from abroad.
Net factor income = X – M, [X = Income earned and received by nationals in foreign countries; M=Income earned by foreign nationals in a country.]
It better indicates the production potential of the nationals as against GDP. In India’s case, GNP is less than GDP. In other words, net factor income is negative in India.
Net National Product (NNP): NNP = GNP – Depreciation
Depreciation is consumption of fixed capital in the process of production.
National Income: When NNP is calculated at factor cost, it is known as National Income. In other words, it can be represented as,
National Income = NNP at market prices – Indirect taxes + subsidies.
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