National Income Concepts: GDP, GNP, NNP, Per Capita Gross Domestic Product (GDP) GDP represents the total monetary value of all goods and services produ...
National Income Concepts: GDP, GNP, NNP, Per Capita
Gross Domestic Product (GDP)
GDP represents the total monetary value of all goods and services produced within a country's borders during a specific period. It includes both final goods produced for household consumption and goods produced for intermediate use in the production of other goods.
Gross National Product (GNP)
GNP is the total monetary value of all goods and services produced within a country's borders, including both domestic and foreign goods. It also includes the value of income earned by residents of the country, regardless of where it is produced.
Net National Product (NNP)
NNP is the difference between GDP and GNP. NNP reflects the value of all final goods and services produced domestically and excludes foreign goods and income earned by foreigners.
Per Capita
Per capita refers to the monetary value of a country's output or income per person. It is calculated by dividing the total national income by the country's population.
Examples
GDP: A country's GDP would be approximately $1 trillion in a given year.
GNP: A country's GNP would be approximately $1.2 trillion, as it includes both domestic and foreign goods and services.
NNP: A country's NNP would be approximately $900 billion, as it does not include foreign goods and income earned by foreigners.
Per capita: A country's per capita income would be approximately $10,000, as it is calculated by dividing the country's total income by its population