GNP

Gross National Product and Per Capita Income

A country 's Gross National Product , or GNP , is a quantifiable method that measures national economic output and production . It can be used to gauge a country 's economic health and size and it is usually measured on a yearly basis in units of dollars . Several components are used to calculate it per this formula : GDP C I G (X-M , where C stands for consumption done at private levels in that particular country whose GDP is being measured . I is investment made by various entities , for

br example- families and business establishments . G stands for expenditure made by governmental entities , X stands for exports and M stands for imports (Economy Watch , 2009

Gross National Product is derived from a country 's Gross Domestic Product and can be stated as the broadest measure of national income measures residents . GNP comprises gross domestic product (GDP ) plus net receipts of primary income from non-resident (i .e . foreign ) sources (CSUN 2009 . Even though the GDP formula includes consumption (C , aggregate production in Third World countries may be understated because substantial economic production may be consumed directly . These Third World countries , also known as developing countries , tend to have rudimentary , non-complex governments and antiquated and unstable economies that make accurate GNP measurements difficult with a typical bias towards understatement

Per capita income (PCI ) is another widely used measure of individuals wealth within a country . It is merely an average...