ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -GDP is the total market value of all finished goods and services produced within a country in a set time period. GNI is the total income received by the country from its residents and businesses regardless of whether they are located in the country or abroad.

Detailed explanation-2: -GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.

Detailed explanation-3: -Moreover, GNI Formula = GDP + (inward remittances by businesses and individuals – outward remittance by the foreigners residing in the country.) Hence, the formula of GNI can be stated as the sum of gross domestic product and the difference between inward and outward remittance.

Detailed explanation-4: -Gross national income (GNI) is defined as gross domestic product, plus net receipts from abroad of compensation of employees, property income and net taxes less subsidies on production.

Detailed explanation-5: -GDP looks at the production level of an economy or the total annual value of what is produced in the nation; it measures an economy’s size and growth rate. GNI is the total dollar value of everything produced by a country and the income its residents receive-whether it is earned at home or abroad.