What are the components of Gross National Product (GNP)? How does it understate aggregate production in Third World countries where substantial economic production may be consumed directly and thus not reach markets where it can be measured? Finally, is per capita income (PCI) a good measure of the level of living people enjoy or are the data skewed, given substantial differences in the distribution of income especially in Third World countries? Construct a 200-250 words posting in which you respond thoroughly, with at least one library source.
The gross national product is the final value of all goods and services produced by the nationals of a country. It is slightly different from GDP in the sense that GDP measures the value of all goods and services produced inside the country in a given year, while GNP measures the output of all nationals. The formula for GNP is
GNP = GDP + NR, where NR is net receipts from abroad, that is total capital ...
The gross national product is expressed.