ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gross National Income-the amount of money a country makes
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Grand National Industry-the biggest industry in a country
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Either A or B
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None of the above
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Detailed explanation-1: -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-2: -These taxes and subsidies are quite small relative to the total, so GNI and GDP are more or less the same, but GNI gives a more precise picture of the national economy. In summary then, Gross National Product (GNP) is: GDP. Plus factor income received from abroad.
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: -GNP (Gross National Product) = GDP + net property income from abroad. This net income from abroad includes dividends, interest and profit. GNI (Gross National Income) = (similar to GNP) includes the value of all goods and services produced by nationals – whether in the country or not.
Detailed explanation-5: -gross national product (GNP), total market value of the final goods and services produced by a nation’s economy during a specific period of time (usually a year), computed before allowance is made for the depreciation or consumption of capital used in the process of production.